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California Areas With Highest Risks for Single Families Foreclosures

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By : John Cutts    99 or more times read
Several metro areas in California offer higher risks for homeowners when compared with other cities. Primarily, these areas are considered risky because of the high number of single families foreclosures and other foreclosed properties available in their markets and because of the considerable number of borrowers facing loan delinquency problems.

Bakersfield foreclosure auctions contain some of the biggest numbers of foreclosed dwellings in the whole state, which is why the city is one of the top 10 areas among those that present the highest foreclosure risks to homeowners. Along with Bakersfield, other California mid-size metropolis cities that are considered risky places for homeowners are Modesto, Vallejo and Stockton.

The number of homes going under California foreclosure auctions remains high and some real estate analysts believe that the state is far from any recovery and would likely experience another wave of foreclosures. In such areas like San Francisco and Los Angeles, analysts are expecting home foreclosures to continue to rise in the coming months, with the number of delinquent mortgage borrowers being their primary basis.

According to local market analysts, single families foreclosures will flood the market in the coming months as almost 10% of home loans have been delinquent for 90 days or more in the cities that made it to the riskiest places list. Analysts further added that some help will be provided to a big number of these delinquent borrowers through government programs and through loan modification efforts by lenders.

However, analysts believe that these efforts will not stop the state's listings of foreclosed homes from expanding as majority of dwellings with restructured loans eventually end up foreclosed a year after the loan is restructured. In addition, market observers believe that the budget crisis faced by California which was largely fueled by the housing market crisis will make the foreclosure problem worse than it would have been if the state's economy was in a strong position.

With loan delinquencies and cash-strapped governments weighing down on the finances of homeowners and borrowers, real estate analysts believe that single families foreclosures will continue to rise in number in several areas of the U.S., including a handful of cities in California.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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