E. Palo Alto leads foreclosure pack
Real Estate News From the We Buy Houses
In a dubious distinction amid the nationwide foreclosure meltdown, East Palo Alto has the highest number of properties in default and in bank ownership per capita than any other city in San Mateo County, according to a report from EPA Can Do, a local nonprofit that provides assistance to those facing foreclosure.
Quoting numbers for the last 120 days from Foreclosure Radar, a Web site that tracks foreclosures around the country, EPA Can Do says East Palo Alto had 132 properties in default and 119 homes either in auction or owned by lenders as of July 28. A homeowner can go into default after one missed payment.
East Palo Alto has a population of almost 33,000.
Three other cities in the county - Daly City, South San Francisco and Redwood City - also have high foreclosure rates, according to the report.
With a population of 106,000, Daly City had 228 properties in default and 221 in bank ownership or up for auction; South San Francisco, with roughly 63,700 people, had 154 and 135 respectively; and Redwood City, with about 77,200 residents, had 146 and 93, respectively.
Throughout the county, there were a total of 1,241 properties in default and 921 either taken over by a lender or already in auction, according to Foreclosure Radar.
East Palo Alto council member and real estate agent David Woods said that in the most extreme cases this year, some homes lost almost 60 percent of their value before foreclosure.
He said a small, two-bedroom house on the 2300 block of Oakwood Drive was appraised at around $600,000 just 18 months ago. In February, Woods said it went to auction for $189,000 and didn’t sell. On the 1100 block of Sage Street, a home that was appraised 18 months ago at about $635,000 went to auction a few months ago and also didn’t sell. The lender is now selling it on the market for $289,000, Woods said.
He said a house on Maple Lane was purchased for $840,000 after it was built two years ago, but, after taking it in May, a bank has put it on the market for $644,000.
“These are the ones that are sticking in my head, because they’re so extreme,” Woods said. “These lenders are just cutting their losses.”
Robert Jones, executive director of EPA Can Do, said the nonprofit is offering personalized advice and assistance to homeowners facing foreclosure. Jones said he’s also trying to bring together organizations from other cities with high foreclosure rates in the county.
As a liaison between the lender and borrower, Jones said his organization tries to broker a customized pay schedule with the bank, based on various details from the homeowner such as salary changes, and the lender that is usually concerned with the bottom line to break even.