Unemployment exacerbates foreclosures in California

Posted by Kendall Harmon

The wave of foreclosures, which began in early 2007, was initially triggered by falling home values and resets on adjustable-rate loans. But lenders and industry analysts say the trend is now being exacerbated by rising unemployment, which has shot up to 9.3% in California.

"The people who are defaulting now are not really people who recklessly got into loans they never could have afforded," said Evan Wagner, the communications director for IndyMac Federal Bank, a big mortgage lender that, having collapsed last year, is being bought by private investors. "These are people who have lost their jobs or who have had their hours cut back at work."

Read it all.

Filed under: * Economics, PoliticsEconomyHousing/Real Estate MarketLabor/Labor Unions/Labor Market

Posted January 28, 2009 at 7:00 am [Printer Friendly] [Print w/ comments]
Registered members must log in to comment.

Next entry (above): An LA Times Editorial: Obama reaches out to Arab world

Previous entry (below): Russian Orthodox Church elects leader

Return to blog homepage

Return to Mobile view (headlines)