California Governor Signs Bill To Fight Neighborhood Blight & Foreclosure Update

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A new bill could bring relief to Californians forced to live near neglected or damaged homes. According to a recent article on Examiner.com, California Governor Jerry Brown signed into law a new bill that will help fight neighborhood blight.

Not only does neighborhood blight bring down the value of nearby homes, it also poses a health and safety issue for the entire neighborhood. Like other states that were hard hit by the mortgage crisis, California faces staggering numbers of foreclosed homes. Unfortunately, foreclosures often become neglected, eventually deteriorating and becoming an eyesore and a burden on the community.

Thanks to the new bill (AB2314), the current provision that makes the owner of a foreclosed property responsible for its maintenance will be extended indefinitely. Another provision will ensure more time for new homeowners to resolve code violations on their foreclosure purchase before local agencies begin proceedings to enforce the codes.

California Foreclosure News

California had the highest foreclosure rate in the country in July, according to recent information released by RealtyTrac. The unfortunate distinction came as a grim reminder that millions of Californians are losing their homes, despite government efforts to improve the housing market.

According to RealtyTrac, approximately 1 in every 325 housing units received a foreclosure filing in July 2012. Los Angeles, Riverside and San Bernadino counties held the top three positions for highest foreclosure activity with 9,308, 4,409 and 3,603 foreclosures, respectively.

Foreclosures in the “Golden State” have risen a whopping 18 percent since June 2011, indicating the government’s efforts to remedy the situation may have merely delayed the inevitable. The Homeowners Bill of Rights, a piece of legislation designed to protect homeowners and borrowers during the mortgage and foreclosure process, comes too late for the hundreds of thousands of Californians about to lose their homes. Other government aid programs typically focus on foreclosure prevention, which is a moot point for many.

If you’re a Californian who is facing the possibility of foreclosure, there are resources that can help. The California HUD page offers several links to local resources such as housing counselors, legal aid and more.

Related article by CBS San Francisco: http://sanfrancisco.cbslocal.com/2012/07/12/california-foreclosure-rate-tops-in-nation-san-leandro-familys-struggle-typical/

Some Good News: San Jose Shows Highest Increase in Home Value

Luxury home at dusk

Want to keep tabs on California’s real estate trends? Check out the following data from Zillow.com to get an idea of what homes are selling for, how many homes have recently sold and which metros are recovering faster:

CA Housing Snapshot:

Home Value Index: $301,300
1-Year Change: -0.4%

Median List Price: $315,000
1-Year Change: +6.8%

Median Sale Price: $307,100
1-Year Change: -0.1%

Total Homes Sold (in the past 30 days): 41,183
1-Year Change: -8.4%

Homes Sold In The Past Year: 5.0%
1-Year Change: -5.3%

Metros With Highest Increase in Value (year-over-year):
San Jose (+6.3%)
Bakersfield (+4.2%)
Merced (+3.2%)
Madera (+3.1%)
San Francisco (+2.6%)

Nat Criss is one of the owners of ForTheBestRate.com. Nat has an extensive background in mortgage finance, real estate, and online marketing. Nat was previously the Marketing Director for AAXA Discount Mortgage, a mortgage company which conducted business in 26 states, and currently helps run CMG Equities, LLC and ILM Marketing. My Google Profile+

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