Santa Ana-based housing data company First American Core Logic released a report sounding the alarm bells on the state of Bakersfield foreclosures at the start of 2010. The numbers are staggering, 16.38 percent in 3-month delinquency, 1.9 percent in real estate owned homes and 5.25 percent rate of foreclosures. People moving to Bakersfield have endless options as foreclosures for sale in California are in high number in this city.
The report ranked Bakersfield as the fifth in cities with the worst residential properties market, Greater Miami is in top place followed by the other Florida cities in second place. Riverside and Las Vegas are in third and fourth place respectively.
When asked to comment on the report claims, a local broker said that she was not surprised. In fact, she is being kept busy by Bakersfield foreclosures.
Robert Savage, another broker, concurred with the report adding that the city is drowning in negative equity with the majority of homeowners owing more than half the original worth of their homes. Houses are being sold for as low as 30 percent of the previous sale price.
Loan modification is one bit of good news as banks are pulling the stops to facilitate negotiations as well as the ever popular short sales. More and more banks are allowing lower monthly mortgage payments as this is the preferred route for homeowners over foreclosures or short sales.
This leniency by the banks comes with a little push from the government. The Treasury Department rolled out new rules for its HAFA or Home Affordable Foreclosure Alternatives Program in November last year, providing incentives for banks and other financial institutions opting to go for short sales over foreclosures.
The incentives are established to help homeowners who cannot keep their houses under the government’s loan modification scheme called the Home Affordable Modification Program or HAMP. The private sector, especially the local realtors’ association welcomes these federal incentives and the opinion is strong towards the government working closely with banks and other private lending facilities in disposing foreclosures for sale in California in general and in improving the state of Bakersfield foreclosures in particular.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.