National and local real estate headlines have been dominated by
rising mortgage foreclosure rates, but in San Benito County, many
owners are finding ways to hold on to their homes.
Hollister – National and local real estate headlines have been dominated by rising mortgage foreclosure rates, but in San Benito County, many owners are finding ways to hold on to their homes.
Although San Benito has taken a hit from the national foreclosure crunch and the related housing slump, relatively few homeowners are actually losing their houses, according to Irvine-based data firm RealtyTrac. In September, for example, there were 66 foreclosure filings – up from 23 in Sept. 2006 and six in Sept. 2005 – but banks only took possession of four properties.
With bank repossessions accounting for only 6 percent of total filings, San Benito is doing better than California as a whole, with 15 percent, or the United States, at 18 percent.
“That could be a positive indicator for your area,” said RealtyTrac spokesman Daren Blomquist.
For all of 2007 through September, there have been 16 bank repossessions in San Benito County. That’s 4 percent of total filings in San Benito County, compared with 10 percent in California and 16 percent nationwide.
Doug Kuerschner, a real estate agent with Coldwell Banker who sells bank-owned properties, said the numbers match his own experience. Kuerschner said he’s handling 36 properties, and only three of them are in Hollister. Most of his bank-owned homes are in Salinas and Greenfield, he said.
“Maybe we have more scrupulous Realtors and lenders here,” Kuerschner said. “Maybe people who are solid in employment are able to ride the wave. … I don’t really have an answer.”
John Quigley, director of the University of California, Berkeley’s program on housing and urban policy, couldn’t offer a definite explanation, either, but he noted that wherever you are in the country, foreclosures are a costly prospect for lenders.
“To the extent that you’re richer than the average base of population and it’s a more desirable than average set of properties, banks are much less anxious to pull the trigger,” Quigley said.
Lori McClelland, owner of Realty World Providence Properties, said she’s also heard that locals are finding a way to keep afloat.
“A fair amount of people are somehow bringing their loans current,” she said.
McClelland has started hosting a monthly mortgage foreclosure workshop, and she said her big message is that homeowners in trouble need to communicate with their lenders. That’s helped at least one workshop attendee, McClelland said. After a rate increase, that homeowner managed to reset her mortgage payments to the initial low rate by renegotiating with the lender.
Unfortunately, the relatively few repossessions can’t change the fact that for many homeowners, the situation is grim, said Karl Skow, owner of Hollister’s Pacific Finance Co.
“Maybe some people are able to avoid foreclosure, but we’re still seeing an upward swing on that foreclosure rate,” Skow said.
