Following the trend expected by experts for California foreclosures in 2008, the city of Barstow recently saw foreclosures rise to triple what they were only a year ago. In the past 3 months, over 50 home sin the area have been foreclosed, and many more are expected as the year continues.
Barstow is a desirable suburban location in Southern California, and during the real estate boom was very desirable among buyers and investors, But once the market peaked around the end of 2006 and property values began to fall, homeowners could no longer sell off their properties for anywhere near what they bought them for.
Most of the foreclosures in Barstow are believed to be on investor owned homes. Many investors expected to be able to turn around and flip properties for a profit, but when the market turned and there were no buyers, investors were left with no options. Many of them also bought low initial cost, high monthly payment adjustable rate mortgages, expecting to not have to pay them long before they sold. Unable to keep up with rising interest rates, these homes went into foreclosure.
Barstow is a desirable neighborhood, and homebuyers would do well to consider buying a foreclosure there for a huge discount.
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