ForeclosureS.com: Defaults on the Rise in Northeast after First Quarter Dip.

SACRAMENTO, Calif. -- ForeclosureS.com, a California-based real estate investment advisory firm and publisher of foreclosure property information, reported today that mortgage defaults were on the rise in previously overheated northeastern markets.

"In the first quarter of the year, we saw a slowdown in foreclosure activity in the Northeast," said ForeclosureS.com president Alexis McGee. "But as we near the end of the second quarter both foreclosures and pending foreclosures are up." Ms. McGee went on to say that, in Massachusetts almost 5,000 properties were in some stage of foreclosure and over 2800 had actually gone to public sale.

She added, "Foreclosure activity in the northern New England states is still negligible, but in Massachusetts, particularly around the Boston metro area, we had a very overheated market for some time. That's no longer the case. Prices have been absolutely flat there for at least three months."

Ms. McGee pointed out that her research had always seen a correlation between increases in defaults and flattening price appreciation.

"Too many homeowners," said Ms. McGee, "have been using their homes as ATM machines during the price run-up of recent years. Now, home prices have gone flat, the refinance option is closed out, and interest rates are rising back to normal levels. People with risky exotic mortgages and high consumer debt will have nowhere to turn."

Ms. McGee also reported second quarter default increases in Queens and Kings counties in the New York City metro area. "There have been over 2800 recent lis pendens filings in Queens, and almost 3000 filings in Kings County. You have to remember that New York is a city of renters with only about 25% of households being owner occupied," said Ms. McGee, "and the greatest percentage of owner occupied properties are in those two boroughs."

ForeclosureS.com has been analyzing markets, providing foreclosure lists and learning program and assisting investors since 1992. The company recently developed a new investor oriented foreclosure property listing system and extended their services nationwide in late 2005, covering more than 944 counties across the U.S.

NEW: ForeclosureS.com has current foreclosure statistics by state, county and foreclosure notice type available for media use. For information on how to access this information please email: [e-mail].

"Our objective at ForeclosureS.com," said Ms. McGee, "has always been to provide much more than just foreclosure lists. We offer both free and fee-based comprehensive learning programs for both new and experienced real estate investors."

"Our programs include a free monthly e-zine 'The Foreclosure Forecast' with 10 years worth of articles available online; Nationwide Webinar Conference Calls; a complete Foreclosure Investing home study program: and intensive Hands on Workshops that put our students out in the field with me and my Coaches to do the actual work of a foreclosure property investor."

She added that her firm has also built a cadre of successful investor clients in order to provide Personal Coaching one on one guidance to recent program graduates.

Ms. McGee has spent her whole professional life in real estate -- beginning with her studies from Arizona State University in 1983 in Real Estate Finance, then as a successful commercial real estate agent, on to personal investing in 1986, and finally as a national investment trainer since 1992.

"On the seas of finance," Ms. McGee said, "whenever money and property are involved, you'll find sharks in the water. The ForeclosureS.com goal is to protect people in trouble from those sharks. We want the owners in default to conserve some equity for a new start. That's far better than seeing them fall victim to a 'foreclosure rescue' scammer, or lose everything in an auction on the courthouse steps."