San Jose Foreclosure Listings Growing Because of Job Loss- By: John Cutts
The number of houses in San Jose foreclosure listings is still rising largely because of job loss, according to Kevin Stein, one of the leaders of the California Reinvestment Coalition.
Despite the decrease in default notices in August compared to July, the number of all homes in the foreclosure process in the Silicon Valley in August was still higher than that of July.
Default notices in the Silicon Valley in August dropped by 18 percent from July to 1,256 notices. The number of trustee sale notices dropped to 1,007, a decrease of 11.5 percent from July.
Foreclosure sales however increased by six percent to 439 units and the overall number of housing units in foreclosure in the Valley in August has risen to 3,795 units, marking an increase from the 3,519 units posted in July.
Based from a report released by the California Employment Development Department, the unemployment rate in the Silicon Valley in August increased to a record high of 12 percent, marking another increase from 11.8 percent in July and posting an overwhelming increase from 6.4 percent in August last year.
The 12-percent level was unprecedented, pushing more homes into San Jose foreclosure listings.
The valley's unemployment rate in August was close to the statewide jobless rate of 12.1 percent and was much higher than the nationwide rate of 9.6 percent.
The manufacturing industry largely drove the jobless rate increase, with its reduction of 13,800 jobs primarily in the electronic and computer sectors.
In addition, the sharp drop in home values and the resulting record number of homeowners with negative equity also pushed more homeowners into foreclosure, according to housing analysts.
The analysts also said that the drop in default notices and trustee sale notices may be only temporary as banks tried to respond to requests from federal officials to step up their loan modification efforts.
Many loan modifications are in their trial periods, delaying the foreclosure process and decreasing the number of foreclosure postings.
Stein of the Reinvestment Coalition also said that lenders have been controlling their release of foreclosures into the market to prevent oversupply and further depression of home prices.
Meanwhile, Martin Eichner, head of the Department of Housing and Urban Development, said he is concerned about the growing unemployment. He expects more housing units to go into foreclosure because of the rising number of homeowners who no longer have jobs.
Article Source :
Author Resource :
John Cutts has been educated in the finer points of the foreclosure market over 5 years.