Sacramento Foreclosure Homes: A sad reminder
Who could have thought that Sacramento bank foreclosures would increase so rapidly that it will take the metro to the top 5 in the foreclosure list? Greater Sacramento was hard hit as it recorded an increase of 272.5% in foreclosure homes between 2006 and 2007. A total of 49,532 filings were seen through 2007 in Greater Sacramento followed by Stockton, which recorded an increase of 271.3% with 22,184 filings. Due to such a high number of foreclosure homes, Sacramento has been declared as the hot zone of California.
The record was set in the first quarter of 2007 when Sacramento County recorded a high rate of bank foreclosures. The hardest hit area or neighborhood was the zip code 95832 where 57 homeowners out of 2,548 defaulted on their mortgages. Most of the blame is being passed on to the adjusting interest rates in the mortgages and the sagging home values. In fact, in the first quarter of 2007, almost 2% of homeowners in the zip code 95832 had defaulted. zip code 95832 recorded a year end high of 22 defaults per 1000 homes.
The total number of Sacramento foreclosure homes in the County reached a total of 1,866 by the end of the second quarter as compared to just 857 homes at the end of the second quarter of 2006. This is a jump of almost 118% and is being seen as one of the primary reasons for an increase in the number of California foreclosure homes. There were 481,392 filings made in the state of California in 2007 and 249,513 properties went into California bank foreclosures, a three times increase as compared to 2006. The heat is not just on in California but it will remain there for some time to come.