According to the May 2012 Foreclosure Report from ForeclosureRadar, the impact on overall foreclosures tends to be impacted by local market conditions rather than overall market trends. The report focused on some of the hardest hit states, including Arizona, California, Oregon, and Nevada.
Negative equity, according to ForeclosureRadar CEO Sean O’Toole, is the real problem. He explains that stopping foreclosures through things like proposed legislation in California, won’t actually help the foreclosure crisis, but ensure that people are stuck with their negative equity longer than they would be otherwise. The two remaining Senate Bills proposed in California would “lead to a much longer economic recovery, increased blight, fewer jobs, lower property tax receipts, and fewer opportunities for new homebuyers and investors.”
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