Homedebtors in Orange County impacted by upcoming rate adjustments on their mortgage loans may be facing foreclosure in 2007. Many homedebtors will be biting their nails down to the nubs deciding whether to sell their homes at a loss rather than declare bankruptcy and carry on in life with an impossible credit rating and no money to purchase another home.
The following OC Register article describes several ugly scenarios and possible survival tactics for upside down homedebtors.
Will there finally be enough market pressure accumulated from these motivated sellers, combined with rising inventories, and declining home values to reduce for median home prices in Orange County?
Unemployment figures in Orange County remain very low at 4.8%.
Yet, today average single family home prices in Lake Forest, CA hover around the $625,000 mark (3 bed, 2.5 bath). Median income in Lake Forest is slightly more than 10% of this median home value at $76,000 per annum.