Tuesday, May 29, 2007

Solano County: 1 in 4 subprime loans will end in foreclosure

Solano County, California

The San Fransisco Chronicle reports:
In 2005, almost one-quarter of mortgages in the Vallejo-Fairfield metropolitan area were subprime loans, according to the Center for Responsible Lending's analysis of Home Mortgage Disclosure Act data.

“Vallejo home prices fell 8.5 percent from November to March, according to DataQuick Information Services. For people who bought in recent months without putting any money down, that means they may owe more on their mortgage than the house is worth.”

“In a report called ‘Losing Ground,’ the center spotlights the Vallejo-Fairfield metropolitan area (which comprises all of Solano County) as a potential trouble spot, with one of the highest projected foreclosure rates in the country. The report predicted that 23.8 percent of subprimes there will end in foreclosure,’ said Paul Leonard, director of the center's office in Oakland.”

Vallejo Neighborhood Housing Services is too overloaded to handle new cases, so it refers calls to a toll-free number, (888) 995-4673, run by the Homeownership Preservation Foundation, a nonprofit group that tries to preserve homeownership.

Calls (from across the nation) have been increasing at an absolutely crazy rate, said Tracy Morgan, a vice president at the foundation. We've been getting 650 calls a day for the last month or two. A year ago we were only getting 75 calls a day.

The full article can be read here.

The Center for Responsible Lending had released a report on March 27, 2007. A Net Drain on Homeownership: Subprime loans made during 1998-2006 have led or will lead to a net loss of homeownership for almost one million families.

The pdf file to this report can be found here.

The Center for Responsible Lending is a nonprofit, nonpartisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices.

The Homeownership Preservation Foundation (HPF) partners with local governments, other nonprofit organizations, borrowers and mortgage lenders/servicers to help homeowners recover from financial difficulties.

Vallejo Neighborhood Housing Services exists to facilitate the production, acquisition, rehabilitation and preservation of housing for low to moderate income households in order to combat community deterioration and to preserve neighborhood stability


1 comment:

berto xxx said...

In having mortgage loans we must be responsible enough to handle it. Especially when it comes to paying it. Because their are many sectors have the tendency to stop because of losing capital. That's only my opinion. Thanks.