Friday, October 12, 2007

we're #2!

According to a report in the Modesto Bee, Merced County surpassed Stanislaus County in mortgage foreclosures in September. The last three months, San Joaquin, Stanislaus, and now Merced have taken turns leading the nation in this critical economic activity. The Bee cited something called "real estate experts" who supposedly claimed that the foreclosure rates around here, generally eight times higher than national averages (during a nationwide foreclosure boom), are due to house prices dropping right when adjustable-rate mortgages become too expensive for owners. They can't sell for as much as they owe.

The article does not explore whether there could be some connection between foreclosure rates and the fact that housing is basically unaffordable for most people who live and work here.

In any case, the stats are mind-boggling:

RealtyTrac said lenders repossessed 921 homes last month in Stanislaus, San Joaquin and Merced counties. In September 2006, by comparison, 14 homes were taken back by lenders.

2 comments:

Bobo the Wandering Pallbearer said...

I've often thought Stanislaus County must be number 2. Explains the smell, if nothing else.

Doc Nagel said...

When in doubt, poop joke.