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The Sacramento Bee, highlighted a family who lost their home recently to an adjustable rate mortgage. This is common place with many home owners today all over the country and especially here in and around Sacramento County.
Sacramento County ranks 7th in the Nation for Foreclosures.
Many of the adjustable rates are resetting to 7, 8 and 9 percent interest. Hello….something needs to be done, here!
As an example, a family whose house payment was $950 per month, now struggles with a payment of $3,307. With an monthly income of $2,200…there’s no way!
Makes you wonder why a Lender couldn’t figure that out when throwing dumping these adjustable loans all over the place, doesn’t it?
The unfortunate part is that many families were under the mistaken idea that they could “trust” the Lender.
With the median income level of $57,000 and 80% of the home buyers last year earning less, families are struggling.
Last year, over 67,000 home owners in Sacramento were spending more than half of their income on mortgage payments, property taxes and insurance.
Lenders issued 18,000 default notices from January 2005 through July 2006 which leaves 49,000 home owners still in trouble.
More foreclosures are coming unless, something is done. This will and is having a powerful effect not only on those homeowners that are losing their homes but every single solitary home owner. Real Estate effects all segments of our economy either positively or negatively.
All of these families who have lost and will lose their homes, will be out of the Real Estate market, purchasing anything on credit and slapped with taxes from the government for the difference in what the house sold for and what was owed the bank. They will not be purchasing items at stores, going out to dinner, showing up at your retail store…they’ll be trying to survive.
This phenomenon of Foreclosure is not just happening in Sacramento County, El Dorado County, Placer County and Yolo County. It’s not just happening in Northern California, Central California or Southern California. It’s not just happening in all of the States in the U.S., it’s happening overseas, as well.
If you think this doesn’t effect you, you’re wrong. It effects all of us. Every segment of the population, every business…think about it…is recession on the way in?
Foreclosures, you can pay to get these listings from the company linked below or you can call me and I’ll send Bank Owned properties to you via your email. Your choice.
Sacramento County Foreclosures
Photo above is courtesy of the Sacramento Bee.
Gena – We are seeing similar statistics here in Florida. Thanks for the offer to email the Foreclosures for Sacramento County and other local counties – getting up-to-date info is key in this market. Working with an advocate like you is what helps buyer “buy right” and not make costly mistakes.
Gena – We are seeing similar statistics here in Florida. Thanks for the offer to email the Foreclosures for Sacramento County and other local counties – getting up-to-date info is key in this market. Working with an advocate like you is what helps buyer “buy right” and not make costly mistakes.-Cyndee Haydon
It is really amazing to see the percentage increases in only a 6 year period. It shows how critical it is for Buyers to have a true fiduciary on their side. I think too often Buyers have not understood exactly what they were getting in to with buydowns, ARMs, etc.
Thanks for your perspective.
Cyndee, thank you. It was my pleasure. I am also an advocate for the Home Buyer and Sellers. The more they know, the better decisions can be made.
Eric, yes it is amazing and time for everyone to be on the same page with as much info as possible.
Thanks for the comment Gena. It looks like you’ve been with the Tomato a bit longer than I have…I better catch up!
The Tomato is the best…you’re doing great!
Gena I am old enough to remember when it was ‘cool’ to spend only one week’s pay out of every month on housing. Those days are gone and it’s so sad!
Carol, isn’t that the truth!
Eric, that is very true and hopefully Buyers are now becoming educated and realize the true value of a Real Estate Professional and Loan Broker. It’s not every tom dick and harry that provides quality service that a homebuyer is left to live with.