Foreclosures and the Westside

Pre-foreclosure data seems to suggest the Westside is going to get hit with a wave of foreclosures in 2010. Currently in Mar Vista, 97 homes are categorized as distressed and only 3 of them are currently on the MLS. If all of those homes came on the market, inventory would double for the area. However, the bank’s know this and they are doing everything they can to work with borrowers.

I already know of 2 examples in Santa Monica where the banks have agreed to lowering interest rates on mortgages to 3% for the next 3 to 5 years and then fixing them around the 5% mark. In one case the person’s monthly mortgage payment was cut in half!

Inevitably, the foreclosures will continue to increase on Westside especially with the foreclosure moratorium period now passed. However, I don’t believe we will see the tidal wave of foreclosures that some housing bloggers are predicting. The banks will do what they can to avoid that.