California Short Sales, Foreclosures, REOs Los Angeles, San Diego, Riverside & Orange County Short-Sales Listings

08 Jan 10 California Short Sales and Foreclosures Continue

Local realtors continue to report high activity for California short sales and foreclosures. California mortgage rates are starting to rise and many insiders are saying they will be continue to rise unless government extends low mortgage rate programs or starts new ones.  Unemployment is continuing to stay around 9% and there are more layoffs from 2 large companies this week and California is faced with more budget cuts to our already strapped state.

What does this mean for California homeowners?

Well with more people losing jobs that will increase home foreclosures and bankruptcy filings that are for sure.  Which means home prices could either fall again with the flood of foreclosures or they will stay where they are.  We would anticipate them falling if the next round of foreclosures on the market if they are anywhere as big as 2007 and 2008.  California Short sales will continue to be strong, we will see about the same amount of standard home sales and as far as homeowners keeping their homes with loan modifications I just don’t have much faith in, I don’t think the amount of successful loan modifications will change that much.  Already hard hit areas like San Diego, Inland Empire, and Merced Counties could face more devastation with this news.  These areas have started getting better with buyers moving in to foreclosed houses and starting to bring communities back to life.

Minutes of the Fed’s December meeting showed a few members of the central bank’s policy committee thought additional mortgage loan buying might be desirable under more adverse conditions.