. . . . . . at least, compared to the rest of the country. While foreclosures have stalled in most of the country, creating a glut of homes hanging in limbo between ‘Owned’ and ‘Sold’, California’s foreclosure process is holding a bit steadier.
While the pace has decreased, that decrease can mostly be chalked up to the holidays + general economic stagnancy. California doesn’t require foreclosure proceedings to pass muster with a judge, so foreclosures here have resumed more quickly in the wake of the robo-signing mortgage scandal than they have elsewhere.
Bay Area foreclosure numbers look encouraging overall, but averages are always misleading. For example, the admirably low foreclosure statistics in Contra Costa county may be a result of short sales, loan modifications, or foreclosure postponement. Neighboring Alameda county, on the other hand, saw a staggering 49% increase in foreclosures in the past month.
Predictions for the new year? Most real estate experts believe that foreclosure proceedings will pick up significantly after the holidays, thus leading to a major buyer’s market with lots of merchandise available. When that happens, it’s the states with improving employment rates that will truly benefit.