Can The Number Of California Foreclosures Even Out Or Lessen Eventually?

Will the rate of California foreclosures finally begin to go down or stabilize out in the Golden State

? That is a question currently up for debate, though many experts looking at a California real estate market are hopeful that state leaders have finally gotten a handle on a foreclosure rate that had been steadily increasing over the last few years.

Nationwide, during the recent recession, somewhere around 300,000 homes every month have been going into foreclosure. California is one of a dubiously distinguished group of states (six of them) that is currently contributing just about 60% of all foreclosures since at least late 2008. Of course, the markets went into steep declines at that time. Arizona, Florida and California contribute a total of 44% of foreclosures at present.

Within the Golden State, there are six cities among the top 10 cities nationwide suffering the highest rates of foreclosure, by the way. In terms of what this means for the rate of California foreclosures, it looks as if the state still has a ways to go in order to fully get a handle on stabilizing foreclosures and increasing revenues from home ownership.

For those who don't know, Modesto and Sacramento come in at numbers three and four on the Top-10 list. Not far behind, at numbers five through eight are the Riverside-San Bernardino-Ontario Metroplex, Merced, Vallejo-Fairfield and Bakersfield. It's fortunate that California is so stunningly large, because if it weren't having six cities out of the top 10 would be fatal for any other state.

California, though, is refusing to quit and is hanging in there and working hard to begin pushing down California foreclosures in the best way it can. The federal government has been assisting by offering a number of different mortgage prevention programs, though a great many citizens in the state bought much more home at the peak of the real estate boom than they probably should have.

Many of these home owners are occupying properties that are worth less than half, in extreme cases, and what they paid for them. They owe much more on their homes and the home would be worth on the market. To compound issues, they got into these homes using exotic home loans that were bound to rise greatly in terms of payment. This has also increased the rate of CA foreclosures as well.

A quick look at the housing market across the country shows that 1 in every 409 homes has entered at least the initial stages of foreclosure. California's rate is somewhat higher than that, which makes it imperative that state leadership take positive steps to get control of the problem to at least help California make it through the recession until its economic environment can improve eventually great

There are signs that there may be, finally, a break in the rate of California foreclosures, because recent data shows a month-over-month decline in the total number in the country and in the Golden State that, if maintained, could be good news in the long run. If this rate can finally be broken and even reduced, it may be that California will indeed be "Golden" yet again.

by: Jerry Jones

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