Last week, saw two foreclosures, both Glendale:

Rossmoyne (neighborhood) Purchased in August of 2002 $417,000
Listed for 119 days, expiring in 2007 for $785,000
Relisted at $651,000 for 298 days as a short sale for $651,00 - another Glendale short sale that didn't sell
At time of foreclosure $668,000 owed + arrears.

Adams Hill (adjacent)
Interestingly this was a home where a recent former owner (prior to the foreclosed owner) was also unsettled.  This home was on and off the market without selling in 2001 & 2002 and finally after 410 days on the market finally sold in the summer of 2002 for $219,900.
The foreclosed owner purchased this home in March of 2007 for $590,000.
At time of foreclosure $640,000 was owed + arrears.
The majority of the foreclosures continue to occur due to the owner’s over borrowing on their homes – not because of "0" down loans and not necessarily because of unaffordable payment adjustments. Most are simply losing their homes in foreclosure due to the simple fact that they owe more than their home is worth.  It appears that most of the foreclosures are due to the home owner “walking away” from their home and their mortgage – more of a “voluntary” foreclosure. 

Read more about Los Angeles homeowner’s walking away from their mortgages.