Wednesday, April 25, 2007

Bakersfield #8 in foreclosures

Bakersfield in top ten nationwide for foreclosure rate



Wednesday, Apr 25 2007 12:02 PM

Bakersfield had the eighth-highest foreclosure rate in the nation during the first quarter of 2007 with one foreclosure filing for every 83 households.

The national foreclosure rate in the first quarter was one foreclosure filing for every 264 households and California’s first quarter foreclosure rate was one filing every 152 households.
Bakersfield had 2,779 properties enter some stage of foreclosure in the first three months of 2007, according to RealtyTrac, an online marketplace for foreclosure properties.

California’s 80,595 foreclosure filings in the first quarter was up 68 percent from the previous quarter and more than twice the state’s total from the first quarter of 2006.

The foreclosure numbers included notices of default, a precursor to foreclosure, notices of trustee and foreclosure sale and bank repossessions. The numbers included houses and some condos.


incessant_din said...

Cool. Now, will Tehachapi real estate go back to dirt cheap, finally? I might actually be able to talk the wife into moving there if I could get 2001+inflation prices. We don't need to commute, so remoteness is no biggie.

ukhousingbubble said...

California foreclosures up 68 percent

HermesAurelius said...

Here’s a scoop, unfortunately it is uncorroborated so at this point is only rumor. I just found out that a very good friend of mine has family members in trouble and upside-down on 5 properties that are now entering foreclosure. The first property was purchased (using CC RE) as their primary residence and was an upgrade from their smaller residence. They were enticed (by CC RE) to use their name and credit to purchase the other 4 properties as “straw buyers” with the promise of $10,000 (I don’t know if it was per property or in total), they would not be responsible for making the payments and the houses would be used as “investment” properties that would be rented out and then resold (flipped) for a profit. Long story short, they’re left holding the bag on this one and are in hot water. Looks like CC stopped paying the bills….They’ve been advised to contact the FBI regarding these transactions. Looks like the end of the road for as someone else called him, "jetboy."

Bakersfield Bubble said...

HermesAurelius -

Will you please email me with some details. I will help this information get out.


HermesAurelius said...


I don't have much more information beyond what I said earlier. I know that they are seeking legal counsel and I doubt they want any troubles with the investigation, so it will eventually be exposed. I wonder if it is business as usual at CC?

Bakersfield Bubble said...

"I know that they are seeking legal counsel and I doubt they want any troubles with the investigation"

Thanks for the information and I hope they get justice!

Adam said...

Hi Hermes,

Check out this story from Riverside Co. about an pyramid scheme that was being operated also by "professionals" that sounds a bit similar to what you're describing:

If it's something like this, then your family members should consider contacting the authorities BEFORE the authorities contact them! If not, they might be left holding the bag not only with a foreclosure(s), but for the felony of mortgage fraud! NOT something they'd want (unless jail sounds like anyone's idea of a good time)....

xs10shell said...

Oooooh - i hope they can proove they were nothing but soooooo ignorant and were sooooo innocently "enticed" that they purchaed FOUR properties. Hellooo - no alarm bells? I reckon that these people are sooooo super honest that they would have come forward and exposed this scheme even if they HAD made a profit, right? Heck - they probably would have donated a large chunk of money to their favorit charity. We're all so RIGHTEOUS when our scams - uh, "investments" go bad. Ah shucks, they were just good ol' boys taken for ride by those city slickers, right?

Adam said...
This comment has been removed by the author.
Adam said...

You're right: had the scam actually been sustainable, they wouldn't be complaining, and everyone would be living the good and easy life.

But as you see, that's the problem with a scam: all pyramid schemes are illegal, simply because they're NOT sustainable. Borrowers and lenders (not to mention taxpayers) are often left holding the bag when the scheme collapses. Financial schemes like this absolutely spoil confidence in the government, the financial institutions upon which we all rely, and in the end the harm and damage spreads well past the perps.

That's why the FBI will go after any "investment" arrangement that has the characteristics of a pyramid scheme, as it's bad for everyone. The fact this scam is being perpetrated by licensed and registered real estate "professionals" in violation of their sworn oath to protect the public trust makes it all the more reprehensible. If licenses aren't pulled, etc, then it's truly a travesty of justice.

FWIW, here's an article on the rampant speculation in homes that swept thru Vegas, leaving idiot investors upside-down who didn't recognize market mania when they saw it and bought in as an "investment" (albeit a BAD investment):

Freedom said...

While in Minnesota, I heard an advertisement from a company that's looking for investors with good credit and at least $50K. They deliberately announced that they would use the investors' names and credit to purchase property. In return, they would get at a minimum of $5,000 up front. I was like, WTF? Did Crisp move to Minnesota?

xs10shell said...

Sheesh - how do these masterminds come up with these things. Let's all eBay our name and credit to the highest bidder.

Forensic Loan Auditor said...

Homeowners Fight Back!!! Get a forensic loan audit, expose fraud and predatory lending. First report to the FBI, DOJ, IRS, Dept of Real Estate , Corp, FTC, IRS, etc. then sue.