California Bank Foreclosures

California State lies on the west coast of USA hugging the Pacific Ocean. It boasts of four mega cities – Los Angeles, San Francisco, San Diego and San Jose. Its climate is as varied as its people. Some opine that it is the most integrated state in the country. California is one of the most prosperous regions not only in America but also in the world. The central valley is rich in agriculture. The story of wealth and fame started with the gold rush. California is famous for its globally famous entertainment industry. But today the headlines are screaming about California bank foreclosures.

By California bank foreclosures reference is made to those houses that have been foreclosed upon by the lenders. The banks are the main lenders and hence we talk about California bank foreclosures. The foreclosure is a judicial process by which the banks realize their unpaid dues. In the case of California bank foreclosures the banks seek the permission of the court to foreclose or seize a property that has been kept as collateral for a loan because the borrower has failed to pay monthly dues. The mortgage contract is closed ahead or foreclosed. California bank foreclosures are followed by court or sheriff’s auction where the house is put up for bidding. If no satisfactory bidder is found then the property reverts to the banks or becomes repossessed by the banks.

Foreclosures have always been a part of the mortgage world but today it is drawing attention because of the sheer number of California bank foreclosures. There are so many California bank foreclosures that the banks are unable to attend to their maintenance and upkeep. California bank foreclosures usually lead to auctions and repossessions. In rare cases workouts are being negotiated by which either there is refinancing or short sales. The worst that can happen to the community is when the banks repossess these California bank foreclosures. The banks cannot look after the maintenance of these houses – they just do not have the infrastructure to manage the huge number of vacant houses.

It seems strange that California, the land of sea, desert, mountains and rivers should now have the largest number of California bank foreclosures in the country. California bank foreclosures are having the last say and have taken over the state. The sub-prime is primarily blamed for the rise in California bank foreclosures but since the slump in the real estate market the prime mortgages are also joining the ranks of California bank foreclosures. The banks are offering huge discounts for these California bank foreclosures and this has led to an increase in sales.

The sale of houses increased by 13.6% in August 2008 from August 2007 as a wave of new California bank foreclosures drove down prices further.According to DataQuick 37,988 houses including new and old have been sold in August. It was a fall of 3.8% from the sales noted in July 2008. Of all the houses sold in August 46.9% came from the foreclosure category.