Sacramento foreclosures drop from a year ago
An article in the Sacramento Business Journal last month reported an encouraging trend: the foreclosure rate in the greater Sacramento area dropped 8.8 percent from last year's figure, according to the online foreclosure tracking service, RealtyTrac.
The figure accounts for three types of foreclosure indicators: 1) notices of default, 2) notices of foreclosure sales, and 3) lender repossessions. The total number of foreclosures, according to RealtyTrac was 4,145 during the one year period across the four-county Sacramento area. Stated another way, approximately 1 in every 210 properties in the greater Sacramento area was in foreclosure during that period.
Bank repossessions in Sacramento remained steady during the same period. Of the 4,145 foreclosures, approximately 24.1 percent (1001 notices) were bank repossessions. A year ago, approximately 23.1 percent (997 notices) of the 4,179 foreclosures were bank repossessions.
The good news about foreclosure decline
Sacramento foreclosure attorneys have observed that the decline in Sacramento-area foreclosures has closely mirrored the national trend. During the same one year period, foreclosures nationwide declined at a rate of approximately 8 percent.
The decline in foreclosure rates, generally speaking, is a good indicator of a nationwide economic rebound taking effect. Foreclosures often coincide with unforeseen financial hardships like market-wide job loss, unexpected unemployment for individuals, higher rates of divorce or family death, demotions and promotion denials, and medical emergencies, among others. A decrease in foreclosures can sometimes mean that one or several of these unforeseen expense categories are either stabilizing or declining in a particular market.
The bad news about foreclosure decline
Statistics can often be deceiving. Sacramento real estate lawyers would caution the casual reader from concluding that Sacramento's real estate market is outperforming the national market. Although the percentage decline in foreclosures in Sacramento has closely mirrored the national percentage decline, Sacramento real estate is in much worse shape than real estate nationwide.
In the greater Sacramento area, 1 in every 210 properties is in foreclosure. Nationwide, the current figure places 1 in every 637 properties in foreclosure. Properties owners in Sacramento are three times as likely to have experienced foreclosure in the past year than their national peers. Nevertheless, the local decline in foreclosures is a welcome indicator of economic momentum.
I'm staring foreclosure in the face. What can I do?
If you are in danger of losing your home or commercial space to foreclosure, the new figures may be less encouraging to you. Foreclosures are still a real danger to the Sacramento homeowner.
Creditors can be fierce and tireless in collecting their debts. Your best defense is to contact a Sacramento real estate lawyer skilled in handling Sacramento foreclosures. Make no mistake: debt collection practices are specific to each region. Your creditors have agents who know the ins and outs of the Sacramento real estate market. This local knowledge helps your creditors determine the costs and benefits of pursuing foreclosure.
Your legal counsel should be just as well-versed in the Sacramento real estate market. It is only armed with this particular knowledge that your attorney can craft your particular foreclosure solutions.
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