The epidemic of foreclosures is pretty evident in all States of US. In 2008, there were more than 1.5 million foreclosures nationwide. When you talk specifically about California, you will find it amongst the most popular States for high foreclosure rates. In 2006, there were more than 142429 foreclosure filings and figures in coming years were not too good either. Same was the situation for Fresno foreclosures.
When it comes to rate of foreclosures in Fresno, it becomes pretty evident that the rate was always on the higher side. It was due to this increase in foreclosure rate that surrounding properties were also suffering. That was the reason behind the bad condition of the real estate market in Fresno.
It was found in many reports that the increase in rate of foreclosures was primarily because of the increase in subprime mortgages. The prominent thing about these mortgages was the predatory loan terms. Here, people were not only facing prepayment penalties but exorbitant adjustable interest rate as well. Because of these factors, the foreclosure crisis in Fresno was extremely severe.
According to a report presented in 2006, the Fresno Metropolitan area had 3,673 foreclosure filings. That was the time when Fresno foreclosures made Fresno to hold the 39th place amongst the cities having highest foreclosure rate.
In another report, it was found that total foreclosure notices filed in the April of 2007 were two times lower than the foreclosure filings in April 2008. In the same year, there were few zip codes where foreclosure rates were extremely high. These zip codes were 93722, 93702, 93706, 93727, 93726, 93720, 93710, 93704, 93705 and 93703. Foreclosure filings were the highest in 93722 with 61 filings.
Situations in 2008 were not too impressive either. There was an increase in the rate of foreclosures in California from July to September. This increase was close to 71% as compared to the foreclosure rate in last year. Also, when checked for the top ten cities of California for higher foreclosure rate in the same year, five Californian cities, including the Fresno, were there in the list.
The bottom line is that though there is a slight decline in the rate of foreclosures in California but things in cities like Santa Cruz, Santa Barbara and Fresno are not extremely good. So, if you are an investor and want to invest in Fresno foreclosures, do keep all these findings and recent trends in mind.
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Written by Alex Rolim.
