There might be hope for places like Riverside, Corona, and Lake Ellsinore areas.  According to a report in our local news paper the Press Enterprise a California real estate research company is anticipating that the worst of the foreclosures are behind us.
 According to their reports foreclosure filings have been slowly declining.

 However their report also stated that foreclosures could also remain at historically high numbers and especially in already hard hit places like Riverside, San Bernardino and San Diego Counties. 

The number of default notices has been decreasing in the later ½ of 2009, but we in the industry know it will shift again as a load of adjustable rate mortgages set to re-set to higher interest rates within the next 24 months.

Remember the decrease is partly due to the banks imposed moratoriums so we are still waiting for that back log to hit the market.  I love how these reports try to spin a positive and hopeful outlook and forget the truth of the situation.  Reality is that we are not really better off than we were in 2009.  There is another wave of mortgages ready to re-set to higher rates, people are still loosing jobs and loosing pay (another 5% pay cut is expected for California state employees), and there is the backlog of foreclosed homes that the banks have been sitting on ready to flood the market.  Get ready for a roller coaster ride for 2010.