California Foreclosures Continue To Set Record Highs
Just when it seemed the real estate market couldn't get any worse in California, foreclosure filings continued to increase across the state showing no signs of abating. The primary contributing factors are the continuing downward spiral in real estate prices, stagnant home sales, and a glut of unsold homes. Worse news still is some real estate experts in California feel the worse might be yet to come.
Most of the mortgage loans that went into default during the last quarter of this year originated between July 2005 and August 2006. A total of 53,943 Notices of Default were filed during April - June 2007. This represents an increase of over 15 percent over the prior quarter, and 158 percent higher than the second quarter of 2006.
The scenario in California is the same being played out across the country. Many homeowners who otherwise would have been unable to purchase a home in California, due to outsized home prices, were suddenly able to do so with adjustable rate loans. Some of these loans were issued on stated or unproven income. These loans in particular were ripe for problems when the adjustable rates reset and homeowners suddenly found themselves stuck with mortgages they simply could not afford. The bottom fell out for them, and they had few if any resources to fall back on. Foreclosure soon followed.
On primary mortgages statewide, homeowners were a median five months behind on their payments when the lender started the default process.
Roughly half, 54.6 percent, of the homeowners in default emerge from the foreclosure process by bringing their payments current, refinancing, or selling the home and paying off what they owe. A year ago it was 88.0 percent. The increased portion of homes lost to foreclosure reflects the slow real estate market, as well as the number of homes bought during the height of the market with multiple-loan financing. In selling a home, all loans must be paid off, which is not the case in the formal foreclosure process, where second mortgages and lines of credit are most often written off.
Four California Cities In The Top-10 Foreclosure List
Stockton checks in at #1 in the country with 8,169 foreclosure filings, 1 for every 27 households, and an overall increase of 256 percent over last years first quarter. The cities of Riverside, Sacramento, and Bakersfield rank 4, 5 and 8 respectively.
Homeowners wanting to stop foreclosure in California face an uphill battle. With tighter lending restrictions in place the number of options available for homeowners to avoid foreclosure in California have become limited. Until some form of equilibrium is achieved this problem seems destined to only get worse.
Victim or Victor – the Choice is YoursYou could lose everything or you could come out of this with more than you ever thought possible. It all rides on your decision to contact us. The sooner you do that, the better the outcome. Get started and stop foreclosure now by answering a few questions for us . To Talk to Someone Now Call: 1-888-I-SAVE-80 There's no obligation. In fact the initial consultation is FREE. And that may be all you'll need to stop the foreclosure for good. Learn What You Can Do To Avoid Or Stop Foreclosure |