Foreclosures Impacting Butte County As Badly As The Rest Of The Country.
Butte County, California, located in the north-central part of the state is home to over 200,000 people. Although not a burgeoning area like it's southern counterparts Butte County hasn't escaped the effects of the sweeping foreclosure crisis that is crippling the rest of the nation.
Local real estate expert, Shawn LeBaron, offered valuable insight to the ongoing foreclosure situation in the county.
The root cause for the foreclosure problem here mirrors the rest of the country with speculation buying and overbuilding by huge new home builders which lead to a rise in inventory levels as demand flattened. Later as more and more foreclosures come on the market this has continued to increase the inventory levels, which has put a huge downward pressure on prices. This has had the effect of a large vortex as each problem feeds the other.
As for the type of residence in foreclosure all areas have been affected. These areas are the middle-income working class as well as the more affluent homeowners.
Foreclosure filings here did seem to lag the rest of the country in the beginning with only a trickle of Notice Of Default filings reported in 2006, increasing to a major flow in 2007, and rising to a roaring torrent in 2008. Worse yet is the belief by local experts that the peak has not been realized, with little hope of seeing one in 2008.
As is the case across most of the country there is no direct involvement from the local or state government in the form of relief. Many homeowner associations and cities in the county are trying to pass laws to make the banks responsible for the maintenance of the lawns for the real estate owner (REO) properties. This will lead to huge fines, which the bank will pass on to the new buyers.
Options for homeowners to stop foreclosure in Butte County remain limited. Many are listing their homes for sale, but have trouble selling because the agents have gotten burned by the short sale process. Many agents will not even show a short sale to their clients, and with a lack of other options more and more homeowners are walking away
The overall real estate picture shows overall prices in Butte County have fallen this year as inventory has decreased. When the inventory levels for the city get to around 6 months of inventory, the prices stabilize. This has happened in the city of Chico, but most of the other cities range from 12 to 18 months of inventory.
No county is immune to the foreclosure problem. Butte County is taking its share of the punishment with little relief in site. Until the peak of the problem has passed the rest of 2008, and possibly 2009, offers no respite for the residents of this sleepy north-central county.
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. |