Staggering Number of California Bank Repo Homes

California State on the west coast of USA hugs the Pacific Ocean. It has four famous cities – Los Angeles, San Diego, San Jose and San Francisco apart from 46 other large cities of USA. It has a varied climate, geography and population. Today this variety has been smoothed out by the foreclosure wave that has led to an increase of staggering number of California bank repo home.

By California bank repo homes are meant those residential houses that have been taken over by the banks at the end of the foreclosure process. These houses have failed to be sold at the auctions and are now posing a threat lying around vacant and empty. The banks are having a trying time to sell them because in the present mood of the market there are few buyers for California bank repo homes.

California is one of the most prosperous regions of the world and if it had been counted as an independent country, California would have ranked among the top ten rich countries of the world. Despite this it ranks as one of the top foreclosed states of America. It was the centre of the housing boom that was preceded by the sub-prime mortgage influx. The bust that followed has led to the staggering number of California bank repo homes. These are now posing dangers lying vacant and unsold attracting crime and disease.

In April 2009 there was a sharp increase in foreclosure activity as the banks came out aggressively from their long period of hibernation when foreclosures had been kept on hold during the festive season. This moratorium on foreclosures was further extended when the lenders decided to wait and watch what moves the new Obama government would take. Now that they know the lines the administration would follow the lenders have stepped up foreclosure activity especially against those borrowers who have no chance of qualifying for governmental help.

In April banks sent out foreclosure notices to 96,560 borrowers that calculated to a rate of 1:138. Foreclosure woes have been aggravated by a whopping 12% unemployment rate.

Banks are complicating matters further by not entering all the houses they have on their list in the market. They do not want to further push down prices by an increased supply of unsold houses. Also they are expecting that the market will stabilize and they will get a better price by holding on to their repossessed units. Another reason is that they do not want to sell too many houses suffering huge losses as this will be bad for their account books.