The household brought in about $1,200 a month – or about $14,400 a year. “I felt bad because now we can’t even find a place to rent.”Īlso in Gilroy, the Reza family bought a $740,000 home in 2005 with a monthly mortgage payment of about $4,100 to start. “We took everything we had to make those payments and we had no more money,” Velasco said. When she called the agent later on to refinance, though, she was told that she could not refinance because all the houses in the area had depreciated in value. “In two years, the (real estate agent) said the house would increase in value and we would have monetary gains,” Velasco said through a translator, adding that she thought the payments would eventually decrease. At the time, Velasco said the household of five adults earned about $4,000 a month. But again, that’s just a sliver of the 325 homes that have notices of default against them, are set to go to auction or are owned by banks.Ĭaught in this wave of foreclosures was Gilroyan Isabel Velasco, 52, who agreed to purchase a home in 2005 for $642,000 with a $4,000-per-month mortgage payment. In Morgan Hill, 13 homes fell into foreclosure in October, down from 19 in September. This affects neighbors who often have to put up with dilapidation and unkempt yards next door, and police have reported that abandoned properties attract thieves and drug users. Still, a foreclosure usually takes about four to six months to sell, so those 44 homes are just a small portion of the 823 in some stage of foreclosure. The bill requires lenders, in most cases, to wait 30 days before filing a notice of default and only after they attempt to talk with the indebted homeowners. His research outfit also reported this month that northern California foreclosures dropped nearly 17 percent in October 2008 from the same time last year, most likely due to Senate Bill 1137, which legislators passed in September. In October alone, 44 Gilroy homes slipped into foreclosure, but that was actually down from 55 the month before, according Bankaci’s data. During the same period last year, there were 149 foreclosures. That equals an increase of about 215 percent.įrom January through October, 325 homes entered into foreclosures in Morgan Hill. During the same period last year, there were 260 foreclosures. This number includes notices of default – the first step in the foreclosure process – auctions and bank-owned properties. In Gilroy, from January through October – the latest month for which data is available – 823 homes entered into foreclosures, according to Serdar Bankaci, president and CEO of Default Research, a data firm that tracks real estate trends. About 1 in every 15 homes in Gilroy is in some stage ofįoreclosure, according to an online realty service that monitorsĪbout 1 in every 15 homes in Gilroy is in some stage of foreclosure, according to an online realty service that monitors local data.
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