San Francisco Foreclosed Homes for Sale Still on the Rise

Filings for San Francisco foreclosed homes for sale still dominate the housing market in California in the third quarter. During the period, the number of notices of default increased by 25.2 percent on a year-to-year basis. The figures represented a 72.0 percent to 607 from 353 in the San Francisco proper.

In Bay Area, the actual number of foreclosures during the period dropped by 38.3 percent from July to September, on a year-to-year basis. However it rose by 31.6 percent to 43 compared with the second quarter.

Industry experts said that based on recent market data, San Francisco foreclosed homes for sale continued to be a major problem for communities and neighborhoods in the area. In September alone, about 4,000 homeowners in Bay Area received at least one foreclosure filing. The figures represented a 116 percent increase compared with the same month a year ago.

Experts said that the massive job loss in the area is a key factor that drives up foreclosures. The unemployment problem transcends social status and race and has affected people from all walks of life.

It is very disheartening to note that a great number of homeowners who are at risk of foreclosures were creditworthy and did not go into foreclosures because they took out bad loans. They are in a precarious financial situation because of mitigating circumstances, such us loss of job, divorce, health or business failure.

Compounding the problem is the declining home prices and values which left many homeowners underwater, meaning they owe more on their mortgages than the value of their properties.

On a lighter note, the declining home prices attracted many bargain-hunting buyers to flock to the foreclosure market. In September, home sales in the region increased by 4.8 percent from the previous month and nearly 8.4 percent on a year-to-year basis.

Industry experts attributed the robust selling activity in the housing market to low mortgage rates and first-time buyers who take advantage of the $8,000 federal tax credit before it expires by the end of November.

Industry experts pointed out that the region has been badly beaten by the collapse of the housing market, resulting to a staggering increase in foreclosure homes that, together with tight lending rules and increasing unemployment rate, have pulled property prices down.