Re: Which states are most/least effected by the bad economy ?
This Weston Ranch was the beginning of the end. The poster development in the poster city. They even say 2 out or 3 bank owned, but it is worse now. And I could forcast this as most of the loans were due to kick up in 2007. This is even a better article. I pull these off of some of the best real estate sites there are.
Ground Zero.... the Foreclosure Capital of America! Stockton, CA
Can I have a minute... to recap 60 minutes from the
Foreclosure Capital of America or Ground Zero -
Stockton, CA.
Stockton is located 80 miles East of San Francisco and 80 miles North of San Jose. Stockton, CA has a population of over 290,000 people. A large amount of that population moved into Stockton starting back in with the real estate bubble in 2003, coming from the Bay Area and the Silicon Valley. The median house was sold at $230,000 (4 Bedroom single family home). By 2005, that same house had a value of $400,000. And now in 2008, same house is probably selling for 70% or less.
During the 2003 to 2005 yearsthe sub-prime loans really became the loans for those with low to mid credit scores, that were financially strapped and those that used the stated income to obtained loans. As a result of these sub-prime loans many are now facing adjustable increases that are leading to an out of control number of foreclosures in Stockton - and all over California. The heart of the problem of so many foreclosures is the sub-prime mortgage crisis. The worst part of the sub-prime issue began last summer and is still continue to reck the economy.
Couldn't anyone with a
"big eye or big vision" seethat we were headed for foreclosure disaster? Where were the forecasters, the predictors, the "know it alls" BEFORE this got out of hand??? And where are they now?
Remember back to 2004-2005 when... and I quote,
"you had to apply NOT to get a loan". You could borrow more than what the home was valued at and most loans issued in Stockton, CA were sub-prime loans. They say people were putting money in their pockets at close of escrow. Now over ? are in default or foreclosure. Never mind the people that have already lost their home.
During the last months (
actually most of 2007), America has seen a decrease in the worth of investments, real estate decrease and our country getting closer and closer to a recession. Banks loaned money to hundred of billion of home-buyers that now can't pay them back! Interest rates on the sub-prime loans have jumped up 10-11% and people cannot afford that jump. The word "upside-down" has become a household word with homeowners, real estate agents, buyers, investors and others.
This started off being a ?backyard" problem but it is not national news that it is affecting not only the homeowners but Wall Street - who took the risky debt and packaged it as a fancy securities and sold them around the world as safe investments. Right now no one is feeling these are safe.
Who got paid??? (Some)Borrowers, Brokers, Lenders, Wall Street, Giant Mortgage Companies, NY Investmen
t Houses, High Yield Mortgage Companies, Rating Agencies and fired CEOs (City Group - Charles Prince = $29 Million; Merrill Lynch - Stan O'Neal = $161 Million) - just to name a couple. Never mind the 120+ millions in write-off loss.
As of last week there were
4,200 homes in default or foreclosure in Stockton, CA. The report covered the subdivision of Weston Ranch in Stockton, CA. In this area, the FOR SALE signs are everywhere, every corner, and every block. 2 out of 3 For Sale sign is probably a foreclosure or distressed property. And some homeowners are doing nothing so there will be no sign in the yard, no agent and no attempt to hold on. There are properties that are under 70% cheaper priced than a few months ago.
According to the report: Things are getting worse, at least for a while. We're not even 40% of the way into this crisis situation. We have a long way to go... Home prices are going to go down even more. Right now Stockton's foreclosures are leading the way to recession.
This is good because it gets down to places, and names names of CEO's that slinked off into the sunset with millions. The scam of scams.
Best Wishes...OF :+waving-5