Seven of the top sixteen metropolitan areas with the highest rates of foreclosures in the nation are in California, according to the latest data from RealtyTrac. In the Stockton, Riverside/San Bernardino, Sacramento, Bakersfield, Oakland, Fresno and San Diego metropolitan areas, there was an average rate of approximately one foreclosure filing for every sixty households in the last quarter.
California is taking a very aggressive approach. Gov. Arnold Schwarzenegger recently announced that California has inked deals with number of lenders, including Countrywide Financial, Litton, HomeEq and GMAC, to streamline and fast-track loan modifications for distressed subprime borrowers.
California also is using state housing money to offer some bridge loans to help consumers rework their mortgages, and the state has created consumer protections related to foreclosures and lending. In addition, a number of California lawmakers back foreclosure moratoriums.
It is unknown if any actions taken by the California government is going to have any significant impact on home values or homeowners in distressed situations.
Economists and the real estate industry are split on whether government intervention is the right solution. But we all agree that no one really wins when homes are foreclosed upon; loan modifications offer better results for both the lenders and borrowers. There is also a strong argument that government involvement only delays the market from bottoming out and turning around.
Heaven knows there is a lot of energy being expended ranting and pointing fingers. That is getting us no where quick! In my opinion there's no quick fix out there to repair damages done by years of uninformed overspending, personal and corporate greed. However, as Realtors we all have a vested interest in the Housing Market recovery. Our continued success depends on it! Within the Active Rain community collectively resides some of the sharpest minds in the real estate industry. I am interesting in hearing some of your positive input on the steps you feel need to be taken / the practices you think need to be implemented to encourage a positive recovery. Please share your opinions.
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First, Mykel, let me applaud you for focusing the solution and asking for positive steps. That's where it all begins for me each day, and asking for direction. Second, as it has always been, it's helping one buyer or family at a time. An additional thought would be to encourage some Universities to set up information/advice centers, working in partnership with realtor organizations to help people (gratis) review their choices. We have some Universities around here that do that for people filnig their tax returns.