Sacramento Foreclosures At Trustee Sale Still Slow
January 9th, 2010 Categories: Pre Foreclosures, Real Estate News
How long can this go on?
I hear through the grapevine that over 90% of the Sacramento County Trustee sales are still being postponed at courthouse steps.
But it looks as if they haven’t scheduled that many?
The entire Government, Industry and powers that be are pushing hard to get homeowners to contact their banks/servicers and get a loan modification started, yet only 4% of the trial loan modifications become permanent.
This must have a lot to do with the fact that most loan modificatrions are only for 5 years, they fix the payment problem (reductions in payment have been about $500 Ave) for a while, but there is typically no reduction in principle. The payment terms are typically changed to a 40 or 45 year loan, with 2 or 3% interest for five years and then reverting to todays rate. So, why do that? I see many homeowners are instead just throwing in the towel even if they can now afford the payment.
Can’t blame them.
The negative equity problem must be addressed.
Statewide, according to Default Research Inc.
California, the country’s most populous state, saw Notice of Default and Notice of Trustee Sale recordings drop by an average of 16.8 percent in 2009, and Los Angeles County, the country’s largest county, saw foreclosures decrease by 16.5 percent. The hardest hit cities with foreclosures in the state were Los Angeles (20,256), Sacramento (13,495) and San Diego (10,745).
