California Housing Nightmare: The Bubble Burst — 200,000 Homes Taken Back

Mick Gregory

With the wildfires under control, and the $250,000 rewards posted for the arsonists, we can calm down and look at another problem that is 10 times worse. The housing bubble has burst. There may be 200,000 homes foreclosed on this year in California. What about next year,300,000 in California alone?

There were some 1,500 homes destroyed in the SoCal fires, virtually all had fire insurance, plus, the land is not destroyed. But with a foreclosure, it’s all gone, and the one who loses his home, still owes the property taxes.

Wanna buy some prime California real estate?

Home mortgage lenders signed the papers for more than 70,000 foreclosure proceedings in California in the third quarter, marking a record for the state, where many housing markets are slumping due to over priced speculation gone bad and mortgage market turmoil, according to a report released on Friday.

Mortgage lenders filed 72,571 notices of default against delinquent borrowers from July through September, up 34.5 percent from the prior quarter and 166.6 percent from a year earlier, according to the report by DataQuick Information Systems, a La Jolla, California-based real estate information service.

2 thoughts on “California Housing Nightmare: The Bubble Burst — 200,000 Homes Taken Back

  1. When do you suppose some enterprising journalist will FINALLY get around to digging out the details of this ‘story’?

    Who else among you would LOVE to know how many of these home foreclosures/ properties are investment props, second homes, vacation homes, bank owned investment properties, or high risk ‘chits’; held by flippers-am I the only one?

    Face it, a large % of the housing boom was a sham. I personally know a couple of flippers who formed a partnership (LLC) and would buy up 10-15 props in a single development in a single day. (I’ll bet you have friends who did it too!)

    If I can pursuede you to admit that not evey house sold during the boom was: “Home Sweet Home” to a charming family, wouldn’t it follow that 70K foreclosures does not necessarily translate into 70K homeless families? [Me? Cynical? From all the stories I have read on the foreclosure crisis-not ONE SINGLE PROPERTY was portrayed as anything but some helpless famlilies’ home] That, in my opinion is not journalism-it’s advocacy-and in this instance the benificiary of that advocacy is not who you expect.

    The banking industry wants a bail-out for their bad behavior. To facilitate this, they conjure images of small children tearfully torn from their homes. Advocate/Journalists suck it up like mama’s milk. The pressure is on for gov’t intervention. If Gov’t intervenes-big business wins again! And the little guy the advocate/journalists wanted to help is now more sc***ed that ever!

    You watch.

  2. You have some good insider info, barbee. But the banks are not the evil ones either. I blame the flippers and the dopes who got in the game late. The banks thought they were doing people a favor. Why not? Homes in California were appreciating by 30% every year until early 2006.

    I blame the media, especially the cable “business” shows and the major newspapers. They were profiting from the devopers and flippers.

    And yes, many families lost everyting too. At a much higher number than the 1200 in California fires.

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