California Foreclosure Rate has surged up and further growing at alarming rate. The state has been ranked second among the other states in terms of foreclosure according the foreclosure statistics of 2009. The California alone accounts for 29% of the total US filing for foreclosures. In the month of March, 2009 there were 107,785 filing, which were 33% more than the February and 66% more than the foreclosures of 2008. Many homes till now have been lost to foreclosure and there is threat that from the sub prime loan category the foreclosure can also enter into the main home loan programs. With the growing California foreclosure rate, the home values are also declining at a very fast pace. Along with California, Nevada, Arizona and Florida are at the top in the number of foreclosures.
The foundation for today's condition was laid down back in 2005 and 2006 when the adjustable rate mortgage was taken like hot cakes with the thought that interest rate would come down. But the story went into another direction, instead of decrease in the interest rate there was an increase that made the monthly mortgage payment out-of-budget for many families. Moreover the recent recession and job loss has further increased the CA foreclosure rates. Along with this $0 down payment home loans had also become one of the reasons of foreclosure.
Highest Forecosure Rates in California
With this the notice of default are increasing in number and causing a big havoc. The foreclosure crisis is hitting every state of US. The foreclosure crisis is covering every income category and class. It is the Southern California that is the home of leading four lenders and thus considered as the epicenter of the whole housing crisis. Riverside county is ranked at fourth position in term of California foreclosure rate 2009. from the month of January to March there have been seen around 28,080 homes with notice of default, auction and as real estate owned.
As compare to 2008, there has been seen 35% increase in the foreclosure rates. After this comes the Merced and San Joaquin, San Bernardino and Stanislaus counties. Further according to the Realty trac in the state of California, foreclosure rate is high and one in every 58 home is facing the foreclosure. Although efforts are being done by the government yet the results will take some time to come.
California Foreclosure Rate: Current Scenario
Recently there has been made certain changes in the law. According to revised law, the lender has to contact the homeowners in case of default and wait for the period of 30 days before issuing the notice of default. This has temporarily decreased the number of foreclosures in California so it is not a permanent remedy. The further decline in the economy is causing the trouble. The foreclosure charts compare the foreclosure data for 2008 as well as 2009. TO further understand the California foreclosure rate check the links given by Realestatezing.com. |
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