San Diego Foreclosed Homes: 9 Percent Increase within One Month

August 28th, 2008

san diego foreclosure

San Diego County has been reported with a sharp 9 percent increase in foreclosed homes in July from what it was in June. About 2,004 homes have received a foreclosure filing in July. Besides, there has been a massive 213 percent increase in the foreclosure filing as compared to 2007. This has hardly hit the real estate industry of San Diego County. This years filing happens to be the 40th consecutive month of the year after year hike in San Diego County foreclosed homes. There has been a default notice of about 3,006 last month. Although this is a 2.5 percent decrease from June but is an increase of 81 percent from what it was in 2007.

The prices of homes in the San Diego County are dropping as the investors and banks realize that low priced homes attract buyers. A large number of people are leaving their houses as they are finding it difficult to pay the mortgages. The tight credit terms and a weak economy are preventing the buyers from investing into the real estate market. The communities that have been reported with the maximum number of default notice in July, ranked by home foreclosures per 1,000 homes, were northeast Chula Vista, southeast Chula Vista, San Ysidro, Paradise Hills, east Escondido, and the 91913 ZIP code.

In July, one in every 182 California homes received a foreclosure filing, which included either auction sale notices, or default notices, or bank repossessions. There were foreclosures on 72,285 properties in California in July. There was a 5 percent increase in California foreclosed homes from June and 85 percent increase from July of last year. Mark Goldman, a real estate finance instructor of San Diego State University has said:

“Foreclosures roar on. What will turn real estate around is the ability of people to pay more for their houses. That won’t happen for a while. The middle class is losing ground at an unprecedented rate.”

Susie Richard, a homeowner in Escondido who bought her home in 2003, has been successful in avoiding foreclosures on her property. She took help from a nonprofit organization in San Diego named Mabuhay Alliance that did a loan modification by which her interest rates became low. She said that after getting no response from her lending institution who said that they can do nothing about it, she resorted to take help from Mabuhay Alliance. It has been observed that new foreclosures are entering the real estate market much faster than the already existing foreclosed homes.