Bay Area Faces Mass Foreclosure Problems

May 13th, 2008

A couple who returned a few months back to their mortgaged property in the Bay Area, after having spent a short vacation at Fort Bliss of Texas, have ceased unpacking even now as the situation is still very dicey in their area. Whenever they have tried to contact their lender for a modification in the loan amount the negotiation has been terminated. These hapless families with a frustratingly one-sided lender response have nothing better to do now than wait for the interest rates to come down, or face foreclosure.

Nicklaus Skaggs, an army official who is to be redeployed to Iraq, leaving his family behind, would have been at a worse situation sticking to his mortgaged property in the Bay Area. He retires from the army after he is able to return from Iraq and then he hopes to buy a new house in Louisville in Kentucky. That being his hometown he also feels secure with their property rates. He even wishes to pursue alternate courses in the form of a bachelor’s degree, followed up with an MBA.

However, he can leave behind his family at ease, with a residence that does not pay for house expenses much. After abandoning their loaned property due to the ever increasing mortgage, the family has been relatively pressure-free. After being released from the eight-month old foreclosure process, they are now finally free to make arrangements for a small-scale rented apartment. They even look forward to saving up for the down payment for a new home in Kentucky. As many people have got completely swept off with the foreclosure tide, they really look to this as a positive aspect in their lives for having tided over this foreclosure wave gracefully. Nevertheless, they hope that lenders extend some grace to people like them who have been almost readily submerged under the financial crisis.

Skaggs finds this to be the best financial situation with doing what is right for the family as being pragmatic enough in every possible way considering the current situation. He in fact doesn’t care about being judged in trying to save his family from this crisis. He does not want to lose any further money for paying some mortgage amount to save something that would eventually drown in the longer run.

Meanwhile, foreclosure rates near around Bay Area face tremendous variations. While cities like San Francisco have relatively lesser number of foreclosed properties, there are those in Contra Costa and Solano that have counties lying under heavy blows received from repeated foreclosures.