The Foreclosure Report

Short Sales, Defaults Surge In Stockton, CA

The Record.net reports from California. "Foreclosure activity locally has been surging, 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 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. The top foreclosure rankings went to Detroit; Fort Lauderdale, Fla.; Denver; Miami; and Dallas."

"California metro areas accounted for seven out of the top 50 foreclosure areas in the country, with only the Riverside/San Bernardino area (12th) and Stockton (20th) in the top 20. 'The third quarter saw a marked increase in the number of properties entering some stage of foreclosure,' said James Saccacio, CEO of RealtyTrac. 'It appears that a combination of factors, including a slowdown in home sales and lower home appreciation rates, are contributing to higher numbers of delinquencies.'"

"It's also likely that part of the reason for the increased foreclosure rates is the long-anticipated effect of the first wave of adjustable-rate mortgages re-setting at higher monthly payments, putting homeowners into financial distress, he said."

"The latest quarterly data report from DataQuick 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. Unlike RealtyTrac, DataQuick measures only the issuances of default notices."

"Statewide, lenders sent out 26,705 default notices to California homeowners during the July-to-September period, up 111.8 percent from 12,606 in the third quarter of 2005, the report said."

"Ben Balsbaugh, residential sales manager 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."

"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."

"Plus, bank short sales typically have a much longer escrow period than deals involving noninstitutional sellers, he said."

posted by Ben Jones @ 9:17 AM