The large inventory of California foreclosure listings is not surprising. The state actually accounted for five out of the top ten metro areas hit hardest by the subprime mortgage crisis. These include Stockton, Riverside – San Bernardino, Sacramento, Bakersfield and Oakland. In Stockton, experts recorded one filing for every 31 homes – making this the city with the worst foreclosures rate in the entire nation.
Resetting ARMS are being blamed for the dramatic rise in the number of foreclosure filings. Add the fact that the nation’s economy is not too strong right now – thanks to increasing unemployment rate and rising oil prices. Lenders are also responsible for this foreclosure mess. Many engaged in predatory lending practices that allowed borrowers with bad credit to take out loans that they can not really afford. What is worse is they offered loan deals with “no down payment” and “interest only” schemes without fully-explaining to these borrowers what they were getting into. Many of these borrowers believed that they were getting such great deals only to end up facing foreclosure, once the interest rates on their loans reset.
The current market conditions are obviously favoring buyers over sellers. States hit hardest by the foreclosure crisis are receiving much buyer interest. Unfortunately, the large inventory of foreclosed properties is simply too much for the supply of buyers. Many of these sellers are actually entering into foreclosure listings contracts with foreclosure brokers like Foreclosure Listings Nationwide. This way they could receive offers from buyers from out of state.
Buyers and sellers have much to benefit form these foreclosure listings. They offer the convenience of being able to browse through the thousands of foreclosure homes being sold all over the nation. These listings also provide sellers with a way to market their homes effectively.
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