The figures from 2009 have been calculated, and as expected foreclosures in California were high in 2009, especially in the Central Valley. However, the real bad news is that a number of factors are conspiring to keep foreclosures high into 2010.
Of all U.S. cities, Merced had the third highest foreclosure rate in 2009 with 10.1 percent of households receiving a filing. Stockton came in fifth at 8.62 percent and Modesto sixth at 8.53 percent. The highest rate in the country was Las Vegas, which saw 12 percent of its homes receive a notice of default, auction, or repossession in 2009.
Unfortunately, projections for 2010 do not include optimism for a decline in these figures. Economists predict that the jobless rate will remain around 10 percent for the new year and that joblessness and underemployment will drive many to be unable to afford their mortgages. The Federal Reserve's $1.25 trillion program to buy mortgage-backed securities is done on March 31. The program helped to suppress borrowing costs, as the rate on 30-year fixed mortgages dropped to 4.71 percent in early December, the lowest level since 1972. When the program expires, there will be less buyers, and homes will linger on the market for longer, leaving vulnerable homeowners more susceptible to foreclosure.
If you worry that you may not be able to maintain payments on your home, you may benefit from speaking to an attorney who has helped many find alternatives to foreclosure.
