Report says about 185 Solano properti...

Report says about 185 Solano properties abandoned by owners

Posted in the Martinez Forum


Vallejo, CA

#1 Jun 20, 2013
Report says about 185 Solano properties abandoned by owners

One in every 473 homes in Solano County are in foreclosure and about 15 percent of them were abandoned by their owners and sit vacant, according to an industry report released Wednesday.

That's about 185 properties abandoned countywide, according to RealtyTrac's latest report, which spokesman Daren Blomquist said gives a glimpse of at least part of the so-called shadow inventory that has worried real estate professionals for some time. The figure excludes bank-owned properties not yet on the market, he said.

In Napa County, where one in every 1,270 properties are in foreclosure, some 13 percent are owner-vacated. That's 30 of the 238 properties in foreclosure, according to RealtyTrac.

RealtyTrac compared its address-level data of properties in the foreclosure process with U.S. Postal Service information indicating whether a home's owner has left, the report notes. Statewide, one in every 799 mortgaged properties is in foreclosure, it says.

"We see these as bad for pretty much everybody in the real estate market -- from the homeowner who's in default, to the buyers who are having trouble finding a place when inventory is so low."

Efforts to prevent unnecessary foreclosures and mitigate their impact on home values have resulted in long foreclosure processes in some states where it can take more than two years, Blomquist said. Even if all the homes flooded the market at once, no price collapse would ensue, "given supply constraints from non-distressed sellers and stronger demand," he said.

Though some distressed homeowners may think that by walking away they wash their hands of the homes they can't afford, they are still responsible for maintenance, property taxes and other bills, Blomquist said. Also, neighborhoods are suffering from these often blighted properties.

Statewide, some 13 percent of foreclosed properties are owner-vacated, and that figure rises to 20 percent on the national level, the report shows.

California's faster process helps it fare better by comparison to some other states, Blomquist said.

"California has a more streamlined foreclosure process than some other places, so these homes don't have the chance to sit vacant during a lengthy foreclosure process," Blomquist said. "The contrast to that would be Florida,(with more than 55,500 vacant foreclosed properties) which has the most," along with one of the lengthiest foreclosure processes.

Illinois is second, with nearly 18,000, followed by California (9,802), Ohio (9,723) and New York (9,173), according to the report.

As of June, owners had vacated 167,680 foreclosed properties nationwide, some 20 percent of all U.S. properties in the foreclosure process. This excludes the more than half million bank-owned homes nationwide that have been foreclosed on but not sold to a third party.

"The best option for some of these owners may be to list the home for sale, given the improving market, or they might consider a deed in lieu of foreclosure, where they voluntarily deed the property to their mortgage holder," Blomquist said.

"Somewhat ironically, efforts to slow the slide of the housing market in previous years are now hampering a smooth recovery by holding back inventory of homes that almost certainly must sell in the future but are not yet listed for sale," Blomquist said.

Vacancy rates are higher on lower-end foreclosures -- 29 percent on homes valued below $50,000, nationwide, and 25 percent on homes valued between $50,000 and $100,000. Only 12 percent of homes valued $1 million or more are vacant, the report shows.

United States

#2 Jul 1, 2013
As the market improves the banks will fix the houses up and rent or sell them

Vacaville, CA

#3 Jul 1, 2013
Thomas wrote:
As the market improves the banks will fix the houses up and rent or sell them
Banks don't rent houses. They refuse to be in the business of being a landlord. They only complete the foreclosure when they are ready to sell the house. Until then they are happy to let it stay in the name of the person who bought it. Better to stay in the house until they offer a business deduction payment to you to move. Real cute. The banks create the problem, exploit it, and make money all the way through. All at tax payer expense. You all can pizz and moan about this person or that person at your precious city. Take on real problems? Not me boss. Better to be a back stabber on another person who can't or knows better than to respond.

United States

#4 Jul 1, 2013
Good point on the banks not about selling then.

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