Foreclosure Rate Mostly Flat in State in 2004; Riverside County Rises 21%

Foreclosure activity fell or remained flat in many of the state's hottest property markets last year, according to Foreclosures.com, an investment advisory company that tracks 18 counties.

Only three markets posted increases, including Riverside County, where foreclosures rose 21% to 6,340 from 5,220 in 2003. Foreclosures dropped 16% in Los Angeles County and fell 7% in Orange County.

The overall number of California foreclosures has declined every year since peaking in 1997, Foreclosures.com President Alexis McGee said.

But she warned that the growing use of adjustable-rate mortgages could lead to an increase in foreclosures as rates rise and monthly payments go up.