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Flood of new foreclosures in California can not occur in the

As a result of increased government pressure on the banking sector reduce foreclosures of properties in arrears, the feared avalanche of new foreclosures in the state of California can not happen.

For the period of three months ending 30 September, the number of homes repossessed the lenders declined by thirty-seven percent compared to the same three months in 2008, when foreclosure activity was at a high point of all time.

If the anticipated flood of new foreclosure activity is in fact avoided, given the fragile housing market a slight boost to a solid recovery. As house prices are showing signs of a collapse in the state of waiting, analysts warn that too much new foreclosed properties could have a negative effect on driving even prices further downward.

Today, there are still thousands of homeowners in California who are not able to make their monthly mortgage payments, as more and more adjustable rate loans are adjusting to higher interest rates. A growing number of credit institutions are becoming more willing to give homeowners in danger of losing their homes more time to catch up with their payments. Banks today do not want to own excess foreclosed properties, as it had just a year ago. The banks had to incur losses for selling foreclosed properties at discounted prices.

As you can imagine, there have been many foreclosures in La Jolla , as it has been in other areas of San Diego. On the positive side, there are now more homes in La Jolla in a 1.5 million dollars that have occurred for some time now.

WIN News NSW/ACT (26/12/2008): State-wide Edition