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Real estate foreclosure activity rises in Q2

Speculation, creative mortgage products contribute to foreclosures

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Foreclosure activity in several Western markets rose in the second quarter compared to second-quarter 2005 after a dip in the first quarter year-over-year foreclosure activity, according to Foreclosures.com, a foreclosure research company. California has seen gains in foreclosure activity, and recently hot housing markets in Las Vegas and Phoenix were cooling off rapidly and defaults there were on the rise, too, according to Alexis McGee, Foreclosures.com president. "Both Las Vegas and Phoenix were impacted by speculators," she said in a statement, and more than 25 percent of new home sales in both markets were going to out-of-state investors. "The speculators are definitely on the run, and walking away from properties they cannot afford to hold and cannot sell at a profit." Foreclosure activity in the Denver metro area was among the highest in the nation. About 5,300 homes in Colorado have already been lost in foreclosure this year, and more than 11,300 homes were in a pre-foreclosu...