Foreclosure sales in Silicon Valley up 585% in one year
posted by Louise Auerhahn
Tuesday, May 13, 2008, at 2:28 PM
The April foreclosure numbers are in, and it doesn't look good. In April 2008, 1,412 Santa Clara County homeowners received Notices of Default on their mortgages, 713 got a Notice of Trustee Sale, and 500 homes went to foreclosure auction, according to ForeclosureRadar.
The latter number -- 500 foreclosure auctions, representing homeowners who were unable to sell their homes or work out any arrangement with the bank to avoid foreclosure -- grew by an astounding 585% in just the past twelve months. The foreclosure crisis is (to say the least) showing no signs of slowing.
And a look into the future: here's a map from the Federal Reserve showing the frequency of homeowners with Alt-A loans (in between subprime and prime) by zip code in Santa Clara County. Colors represent the number of Alt-A loans per 1,000 housing units; the darker the color, the more Alt-As.
(Continued...)
The highest rates (areas in black) are zip codes 95127, 95148, and 95140 up in the east foothills / Mount Hamilton area, along with 95046 in San Martin. Most of these homeowners are still current on their payments, but 17.6% have had a late payment in the last twelve months; and as the recession deepens and home prices fall further, more families may find themselves having trouble paying the mortgage.
How did we get into such a state? The FBI and the IRS are stepping up a criminal investigation of more than a dozen mortgage companies over their lending practices and bundling of loans. Better late that never, I suppose, but more fundamental reforms are needed to restore families' security and make sure homeownership does not become an impossible dream.
The latter number -- 500 foreclosure auctions, representing homeowners who were unable to sell their homes or work out any arrangement with the bank to avoid foreclosure -- grew by an astounding 585% in just the past twelve months. The foreclosure crisis is (to say the least) showing no signs of slowing.
And a look into the future: here's a map from the Federal Reserve showing the frequency of homeowners with Alt-A loans (in between subprime and prime) by zip code in Santa Clara County. Colors represent the number of Alt-A loans per 1,000 housing units; the darker the color, the more Alt-As.
(Continued...)The highest rates (areas in black) are zip codes 95127, 95148, and 95140 up in the east foothills / Mount Hamilton area, along with 95046 in San Martin. Most of these homeowners are still current on their payments, but 17.6% have had a late payment in the last twelve months; and as the recession deepens and home prices fall further, more families may find themselves having trouble paying the mortgage.
How did we get into such a state? The FBI and the IRS are stepping up a criminal investigation of more than a dozen mortgage companies over their lending practices and bundling of loans. Better late that never, I suppose, but more fundamental reforms are needed to restore families' security and make sure homeownership does not become an impossible dream.
Labels: foreclosures, housing
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