Squatters, green spray paint: the 15% (foreclosure) solution in Temecula

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Today’s L.A. Times tackles the foreclosure problem in Temecula, with this eye-opener: City official Rich Johnston tells Scott Gold ‘... as many as 15% of Temecula’s 22,500 single-family homes are bank-owned or in some stage of foreclosure.’

Highlights and low-lights:
--A partial survey of one-quarter of the city has identified 200 vacant homes.
--Inspectors have found squatters in some vacant houses and pot growing behind one.
--Reports of ‘green pools’ (‘almost guaranteed to breed mosquitoes’) are running 45% ahead of levels a year ago.
--Local real estate agent Gary Lupo says homes in the area could lose 80% of the gains in value made since 2001.
--Neighbors have begun using green spray paint to disguise browned-out lawns at foreclosed houses.

Analysis: Yes, it’s relatively upscale, but Temecula is the kind of out-there suburban boom town that is at risk in this downturn. The population has nearly doubled, from 57,000 in 2000 to 101,000 today. That’s a lot of growth built in part on shaky assumptions: cheap gas, cheap credit, plentiful jobs, rising real estate values, and the biggest and shakiest assumption of all: physical growth built on the expectation of future economic growth. Watch out below.

Thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo: Los Angeles Times