Bank foreclosures

Stockton in San Jaoquin County is the 13th biggest city in USA located in California. During the last ten years Stockton has experienced a population boom that led to an increased demand in housing. This housing boom was soon followed by the bust making Stockton one of the prime foreclosure concentrated regions. People moved in from the relatively costly area of San Francisco Bay region to the Stockton locality. Consequently Stockton became the epicentre of the housing bubble during the 2000’s. Of all the cities Stockton was hit the hardest leading to innumerable bank foreclosures in Stockton.

From 1998 to 2005 property value increased nearly three times. The bubble burst in 2007 leading to foreclosures and staggering number of bank foreclosures in Stockton. When the burst took place the value of houses fell by 39% in 2008. Bank foreclosures in Stockton were inevitable with the foreclosure rate being 9.5% – the highest in USA.

Bank foreclosures in Stockton are largely responsible for the city being termed the most dangerous in the country. Many pundits are tracing the causes of bank foreclosures to racial discrimination made by the lenders towards the minorities. In Stockton the Hispanics comprising 32.5% were peddled toxic sub-prime loans with teaser rates.

According to RealtyTrac, Stockton noted 8000 foreclosures in 2007. The foreclosure rate was 1:27. In the second quarter of 2008 the foreclosure rate worsened – 1:25. Some of the blocks in Stockton have become eerie and deserted. Even when an ice cream trundles through there is no response. Nothing can keep out the vandals or drug peddlers while Mother Nature takes over sending her denizens of mosquitoes, rats and even snakes.

In September 2008 foreclosure woes combined with the pains of joblessness in Stockton – unemployment touched 12.4%. In the same month of 2007 it was 8%. This has set off a chain reaction with school enrollment dropping by 7% from 2006. Domestic abuse has increased as families are breaking apart triggered by rage and frustration. In one place 290,000 have formed prayer groups to pray for those losing their homes to foreclosures.

Lately short sales are picking up in Stockton as lenders are being more lenient about advancing loans. The banks are offering huge discounts and this is leading to a good number of speculators making bulk purchases.

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