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Stockton Foreclosed Homes for Sale: 69 Percent of Home Sales

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By : John Cutts    99 or more times read
Stockton foreclosed homes for sale accounted for more than 69 percent of all house sales in September, according to a real estate firm.

Despite a slowdown in foreclosure in the third quarter by more than 3 percent compared to the same period last year, defaults and foreclosures are still high in the city. A total of 8,000 residential units were notified of foreclosure actions, representing 3.5 percent of all housing units in Stockton or one in every 28 units.

Stockton, considered the face of the first wave of foreclosures, is still fourth in a rank of large metro areas hit by foreclosures.

Other cities where foreclosure sales comprised the majority in September were Merced, Madera, El Centro and Las Vegas. The first three areas are in California, with their foreclosure sales comprising 74 percent, 68.7 percent and 68 percent, respectively. Las Vegas had nearly 68 percent of its overall home sales accounting for foreclosure sales.

With a 1.6-percent increase in foreclosure filings from the second quarter, the number of Stockton foreclosed homes for sale in the coming months are expected to rise further and push up the percentage of foreclosure sales further.

Among the groups severely affected by the foreclosure crisis in Stockton and in other areas of San Joaquin are Latino families, especially Mexican households in the northern parts of the San Joaquin Valley.

Based on a Pew Center report, Latino mortgage borrowers in the valley were vulnerable to foreclosures because most of them took out higher-priced subprime loans in 2007.

Pew said that while only 10.5 percent of mortgage loans granted to whites were high-priced loans, nearly 28 percent of loans provided to Latinos were high-priced and nearly 34 percent of loans granted to blacks were high-priced.

Aside from the problem of subprime loans, many Latinos also lost their jobs or had reduced wages. Exacerbating their financial problems are language barriers and lack of contacts with legitimate organizations that could help them negotiate with banks. Many of them have been victimized by mortgage swindlers.

To help these Latino families, Carlos Gonzalez Gutierrez, Mexican consul general in Sacramento, launched a pilot foreclosure prevention program for Latinos in the San Joaquin Valley. He partnered with California Department of Consumer Affairs, the nonprofit ClearPoint Credit and Catholic dioceses in Stockton and Sacramento.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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