Tuesday, August 14, 2007

Bakersfield #8 in foreclosures (remember we are better than Stockton)

From the Central Valley Business Times:

The Central Valley city of Stockton has the highest foreclosure rate among the nation's 100 largest metropolitan areas during the first six months of the year, according to RealtyTrac Inc., an Irvine-based online foreclosure information company.

With one foreclosure filing for every 27 households, Stockton, reports the highest foreclosure rate among the nation's 100 largest metro areas during the first half of 2007. The metro area, comprised of San Joaquin County, reported a total of 8,169 foreclosure filings on 4,239 properties, more than twice the number of properties reported in the previous six-month period and more than triple the number reported in the first six months of 2006.

Detroit, Mich., and Las Vegas, Nev., are second and third on RealtyTrac’s list.

Two more Central Valley cities are on the “top ten” list: Sacramento at fifth and Bakersfield at eighth.

15 comments:

Rob Dawg said...

Bakersfield: Fresno weather, Oxnard culture and Stockton economy.

trent said...

I work for CurrentForeclosures.com, a foreclosures site and have seen a huge increase in the number of foreclosures in the past 7 months. I believe it is a combination of not only sub-prime and ARM mortgages, but also the high number of people who have gotten loans with interest rates at an all time low... in addition to the rapid depreciation in some areas and the difficulty some are experiencing in selling their homes.

Ichabod said...

Woo hoo! We're number 8! We're number 8!

P.S.- Sniffsniffsniff, I smell a troll...

Raynor said...

trent: I asked this before but why would interest rates obtained at an all time low create more foreclosures unless they were ARM's and are being 'readjusted"?

crash said...

The appraisers seem to be artificially propping up values. I'm trying to buy right now and was told by a reputable and trusted agent that all the foreclosures and short sales are not considered in the comps "at this time," whatever that means. Doesn't that seem a bit unethical? The selling price is the selling price, regardless of the circumstances. Omitting the distress sales paints an unrealistic picture. What do you think?

Bakersfield Bubble said...

I think you have a realtor who is trying to make a buck and will say anything to get your $$$$.

In the past down cycles they used this same BS argument. it was wrong then and its wrong now. A sale is a sale and it counts.

Just another lying member of the REIC!

crash said...

Thanks for responding, BB. I suspected that many would scoff at my description of a "reputable" agent, but really, I have no reason to doubt this agent and assistant. They have represented us in six transactions in the last eleven years (all pre and post bubble, unfortunately) and have always been ethical and realistic about the market.

We have been looking for a home for four months and have been shown at least 45 properties in person and hundreds online. I am stunned by the number of short sales, foreclosures, and the condition of these properties when the "owners" finally are evicted.

Just today, a Pounder listing on Georges Letour had a team of gardeners digging every last living plant, tree, and flower out of the ground. The house is stripped ... no light fixtures, appliances, faucets, rain gutters, etc. A Balfanz home on Gainsborough was stripped to an even greater extent. Bath tubs, counters, fireplaces, a/c units, nothing was left. That home has since been purchased by the original builder and is being refurbished.

It is absolutely disgusting that these "owners" who default don't just walk away, but do such incredible damage to the properties.

Back to the appraisal issue, I have an offer on a short sale in Brighton Estates, but after the appraisal came back the lender didn't like the number and said the evaluation wasn't "thorough enough."

The appraisers and lenders need to consider the condition of the homes when they place a value. I am surprised that the local paper hasn't addressed any of this.

Ohhhh, BB, the stories I could tell you!!!

crash said...

Not sure if it is appropriate to address this issue on this blog, but we need a house immediately (school year starting in less than a week).

I am currently with my children at our vacation home and have been frantically looking for a house in Bakersfield for months, but those pesky short sales keep getting in the way.

Here's what we want, in order of priority: 93312, 93314; close to 1/2 acre or more; newer construction; block wall; 2800+ feet. Can go as high as $620,000, cash, with a very short escrow. Unfortunately, everything that fits that description is in a short sale or some stage of foreclosure.

Bakersfield Bubble said...

crash-

I have been in several of these homes and it is horrible for the neighborhoods. Brighton Estates was a haven for you know who and his band of merry men (& women).

I am not a realtor, my only involvement is with commerical real estate (investment and mgmt) so I can't help, unfortunately! UGH!!

However, there are lots of realtors who visit here, I wonder if any of them have any advice?

Maybe you can try a lease to own deal with the local RE moguls - just kidding.


My problem right now is I still think prices are too high, I could be wrong so don't base your decision on some anonymous blogger.

There are still over $1.5 trillion of ARMS to reset in the next 18 months. We have only seen about $500 billion so far this year and look at what has happened to the housing market.

What happens when this tsunami (yes I use that word too much) of resets floods the market?

One thing in your favor is the spring and summer selling seasons were a total bust. The summer selling season is offically over. The real estate market will slow until March 2008.

Until then you have a signifcant advantage as a buyer and can use that to your advantage. The difficulty will be finding a realtor who has the patience to look out for your interest and not their own to get you the best deal.

All these sellers & realtors are begging for buyers. I go to numerous open houses and hear the desperation. Sales volumes are down 75% from their peak. They need to make a sale to eat.

As to the appraiser issue, appraisers are being very conservative and they are killing deals. Also the lenders are tightening credit standards, which is killing deals.

Summary - I am sure you already know you are in the drivers seat I think if you are patient you might be able to steal something!

crash said...

It's hard to be patient when you have little kids who need to be in school! Alternative: rent for a year and piss away (can I say that?) 30,000.00+ that you can't take off your taxes.

You are right about prices being too high. Look at most homes for sale right now, particularly the higher end homes ... do a little research and you will find that most are in a tax defaulted status.

crash said...

Don't define yourself as "some anonymous blogger." It resonates self-deprecation. I respect what you have done to educate and inform buyers and sellers in this market. You are and you aren't anonymous, if you know what I mean.

It's my understanding that our market won't correct until fourth quarter 09. Let's hope the appraisers get their act together by then.

Realestateslasher said...

Crash... Why wait for the appraisers to get their act together, when all along it's their show, only they control
the prices in town

bako said...

The appraisers and the banks, but even before them, the BUYER. A property is only worth what a buyer will pay and what the bank will loan on.

Jennifer said...

Crash,
I am a local realtor in Bakersfield and we have a listing in Brighton that may be what your looking for. It is vacant and ready to go. The sleers are very motivated and it is not a short sale. Give me a shout and let me know if you would like to see it.
jholloway@bak.rr.com

Trent said...

I work for CurrentForeclosures.com, a foreclosures site and have seen a huge increase in the number of foreclosures in the past 7 months. I believe it is a combination of not only sub-prime and ARM mortgages, but also the high number of people who have gotten loans with interest rates at an all time low... in addition to the rapid depreciation in some areas and the difficulty some are experiencing in selling their homes.