The story running in todays newspaper is only the beginning of the coming tsunami of foreclosures. This market will be flooded with bad loans and the morons who took out these loans. The Californian should have been running stories educating people on the home buying process instead of puff pieces on the local real estate moguls.
Don't fall victim to their sad stories - no government bailouts. Restitution will need to come from the greedy Realtors, builders and mortgage brokers. It is estimated that 1 trillion dollars of ARM's will adjust this year -- 1.0 trillion to reset - and another 1.5 trillion will adjust in 2008. The sob stories will fill the newspaper everyday - see the "public notices" section.
This town was sold a bill of goods that it can't afford - "buy now or be priced out forever", "now is a great time to buy", "do whatever you can to get a home, since real estate only goes up", "they are not making anymore land", etc... The seller was your local Realtor and mortgage broker. Believe them at your own financial peril!
From the Bakersfield Californian :
In the last three months of 2006, for example, Kern counted 153 foreclosure sales, said John Karevoll, a real estate analyst with DataQuick. That's up from 19 in the same period the previous year.
Statewide, foreclosures jumped almost 600 percent, DataQuick figures show.
In raw numbers, that meant nearly 6,080 foreclosures in California during the last quarter of 2006 compared to about 875 during 2005's final quarter.
In Dunaway's case, the situation is especially grating because he believes his mother, Mary Dunaway, unknowingly signed off on a predatory loan more than seven years ago.
Mary Dunaway said stress is eating away at her.
"I'll be 83 years old in May and they want to throw me out in the street," she said during a recent interview at her well-kept home in the 2600 block of Tangerine Street
Sunday, February 04, 2007
Posted by Bakersfield Bubble at 7:48 AM