Letters to the Editor

Re: 'California mortgage defaults hit 10-year high' (July 24)

Dear Editor:

As a mortgage broker in Colorado and California, I have seen both sides of the ups and downs in the real estate markets. California has a long way to go down due to the massive appreciation this past seven years. Denver has dropped from number one to number two in foreclosures. Southern California is just getting started!

With the option ARMs and B-C loans kicking in, there will be a large decrease in property values. The median income from most borrowers cannot afford the higher mortgage payments. Most will move out of state to lower-priced states, such as Colorado, where homes have lost 20 percent of value in the past three years.

Frank Brock
Tri-State Mortgage
Denver/Los Angeles

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