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San Jose Home Foreclosures Shot Up, Cut Down Resale Prices

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By : John Cutts    99 or more times read
San Jose home foreclosures spiked in January this year from December last year and continued to push down prices, based on reports from a Discovery Bay real estate information provider.

Throughout Santa Clara County, where San Jose is the county seat, foreclosure activity stepped up by 37 percent in January, with a total of 4,850 houses listed for foreclosure sale.

The median sales price for previously-owned single-family detached homes dropped to $490,000, marking a 7-percent decrease from the December 2009 median resale price of $525,750.

Foreclosure sale accounted for around 28 percent of all home resales in Santa Clara in January, substantially down from the foreclosure percentage of almost 50 percent in January last year.

In nearby San Mateo County, home resales totaled 1,687 units, an overwhelming 71 percent increase from December 2009 sales. Foreclosure homes comprised 20 percent of all home resales, down from the 34-percent share in January 2009.

The median sales price for pre-owned single-family homes in San Mateo was $627,500, down by almost 5 percent from the December 2009 median of $658,000.

January foreclosure sales data also showed that most San Jose home foreclosures took a longer time to complete. Of the nearly 4,900 homes listed for auction in Santa Clara in January, only 437 foreclosures were completed by the end of the month. In San Mateo, of the nearly 1,700 foreclosure filings, only 159 foreclosures were completed.

In January 2009, a total of 457 foreclosures in Santa Clara were completed, out of 1,728 started. In San Mateo, 114 foreclosures were completed, out of 544 started.

Residents of San Jose said that the city bucked the slowing trend of home foreclosures in California because of the continued resistance of mortgage lenders in modifying loans. Leslie Martin, a condo owner in San Jose, said that one year has passed since her mortgage was put into trial modification by Chase, but she is still waiting for permanent modification status.

In response to criticisms, Chase spokesperson Gary Kishner said that the bank has been working to help Martin keep her home. He added that Chase has restructured around 60,000 mortgage loans under its own program and about 7,100 more under the Home Affordable Modification Program.

According to Martin, HAMP is being carried out by banks in a complicated, confusing and time-consuming way, frustrating homeowners and pushing them into defaults and pushing up the numbers of San Jose home foreclosures further.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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