Wednesday, November 15, 2006

Stockton Foreclosure Activity Surges

From the Stockton Record:

Foreclosure activity locally has been surging, but other areas of the country are seeing a growing trend as well, according to a new national survey. Stockton placed 20th highest for foreclosure activity out of 100 metropolitan areas across the United States in a new report from RealtyTrac, an online marketplace for foreclosure properties. The Stockton metro area - basically, San Joaquin County - had 1,050 mortgages in some stage of the foreclosure process.
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The latest quarterly data report from the real estate research firm DataQuick Information Systems of La Jolla showed that third-quarter residential foreclosure activity in San Joaquin County increased to its highest level in more than seven years. Lenders sent out 898 default notices in San Joaquin County last quarter. That was a 178 percent jump year to year from 323 notices in the third quarter of 2005.
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Ben Balsbaugh, residential sales manager for PMZ Real Estate in Stockton, said that more houses on the verge of foreclosure are hitting the market, especially "short sales," where a bank is working with a seller who owes more than the property is worth.
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Short sales are up these days, Balsbaugh said, but this doesn't necessarily mean bargains for home buyers. "There are so many homes for sale out there right now, the chances of getting a deal is better with an individual seller who is highly motivated in this competitive market," he said.

2 comments:

Anonymous said...

The foreclosures seem to be mainly affecting the folks who bought in 2005. It doesn't look very widespread yet. Maybe as prices decline further, the homes sold in 2004 will be affected, then the ones sold in 2003, etc.

JR said...

Anon 3:54,

You are correct. As the market values decline further, more people will be brought into this mess. The biggest surprise will be for the people who went for maximum refinances in the last couple of years. Only a purchase money mortgage (a mortgage used in the initial purchase) is non-recourse . Once you refinance, or get a 2nd mortgage, the repayment of those loans is recourse... meaning that even if you let the lender foreclose, the lender can come after you for any shortfall, if the ultimate sale does not cover the loan amount, including foreclosure costs. Then the refi mania will prove to be a truly depressing event.