Humboldt County Foreclosures On The Rise Again

July 3rd, 2008

Foreclosed homes are a serious problem that has put the homeowners in a situation of utmost despair. It has caused a great harm to the real estate as well. The Humboldt County foreclosures has shown its highest record of foreclosure filings this April over the last 30 years. There has been a total of 63 NODs this April and happens to be the highest. It was 51 NODs in January, 1981 and that was the second-highest record in Humboldt.

The defaulters have been sent notices after they have failed to repay within a deadline of 90 days. The condition has become all the more difficult as there has been an increase in the price of food and gas. The economists are highly tensed about this particular situation. Even the real estate is suffering a great loss due to this. The price of houses has gone down. The interest rates being high, the foreclosures problem is on the rise. However, Tom Hiller, the President of Humboldt Association of Realtors thinks that Humboldt County is still in a better off situation than other places in the state. He has said:

“Even with these new figures, Humboldt County ranks 53rd out of 55 counties in California as far as the population per number of foreclosure sales. In other words, our numbers are at the bottom of the heap.”

Erick Eschker, HSU Economics professor, has said that, “When prices go down, especially for people who purchased a home with no money down, they immediately have negative equity. They owe more than the house is worth.” Many of the homeowners of the Humboldt County are finding themselves in exactly the same setting. For example- A house that is on auction at Eureka has been estimated at $160,059 whose market value should be $217,902.

Tom Hiller expects that the demand for homes will climb up soon. It has been seen that the sales of home has shown a good prospect in the month of May. The low interest rates and prices are surely going to attract the buyers to buy homes. This is expected to reduce the home foreclosures in the near future. However, on the other hand, if there is a deceleration in the economic condition then the problem is going to continue. Various measures are needed to be introduced to combat the foreclosure problem and get rid of it as soon as possible.