Monster wave of new home foreclosures to hit



A monster wave of new home foreclosures to hit Northern California.
Socialist Big Government Democrats are clueless on how to create jobs.  Their
answer to everything is more taxes and anti-business regulations.



Democrats are Clueless:  A tidel wave of new foreclosures . . . but don't you dare ask for new private sector jobs to be created in the People's Republic 

A monster wave of new foreclosures threatens to engulf Sacramento's already battered real estate market as major banks move to slash their backlog of delinquent loans.

Socialist Democrats cannot seem to grasp that if you encourage new business or the expansion of current businesses that might create jobs.  With jobs people could afford to make their house payments.

To the Socialists of this People's Republic the only answer to everything is more taxes.

Nearly one out of every seven mortgages in the Sacramento region is somewhere in the foreclosure pipeline, a grim reality that could hold back any near-term recovery in the local housing market, according to a Sacramento Bee analysis of local foreclosure data.

Based on the average monthly sales in the capital region, it would take a year and a half to exhaust this "shadow inventory" of distressed properties. In the past two years, such distress sales have dominated the local real estate market, pressing prices ever-downward and making it hard for other sellers to compete.

"This problem is going to be with us for a while," said Kevin Stein, associate director of the California Reinvestment Coalition, a San Francisco-based consumer advocacy group.

A Bee analysis of foreclosure records compiled by Irvine-based RealtyTrac and Foreclosure-Response.org places the Sacramento region's shadow inventory at 53,256 homes in Sacramento, Yolo, Placer and El Dorado counties.

This figure includes three categories of distressed properties:

• 12,285 houses already owned by lenders but not sold.
• 19,367 units whose owners have received an initial foreclosure notice, or notice of default, but have not yet been foreclosed upon.
• Another 21,604 borrowers who are 90 days or more behind on their payments but have not yet been served with a foreclosure notice.

Lenders won't foreclose on all these homes. A sizable number of homeowners will win lender approval for short sales, which allow them to sell for less than they owe and get out of their mortgage. Others will obtain loan modifications.

But a big chunk of the distressed properties will be taken over by the banks because the amounts owed are so large and the loans have been delinquent for so long.

"This problem has been lingering for a long time," said Doug Covill, president of the 5,500-member Sacramento Association of Realtors. "The sooner we get through this inventory, the sooner the economy improves."

The region's mountain of distressed loans grew over the past year, in part because major lenders suspended or slowed down completion of foreclosures in response the "robo-signing" scandal. Banks and mortgage servicers were accused of rubber-stamping foreclosures without actually reviewing homeowners' loan documents.

For more on this story