1 in 10 in California in mortgage payment default.
New data released reveals that 9.5% of home loans in California are in default. Sub prime loans seem to be the concern of the past and now unemployment seems to be the number one reason why people default on their loans from my discussions with clients as a San Jose Short Sale Agent. The data is fairly consistent with California’s unemployment numbers.
Although we may already have by-passed the bottom of the housing market, in order for us to see dramatic improvement, we must address the unemployment issue. Want to see more people buy homes? Give people sense of security about their jobs. People who feel secure about their employment buy homes. People who are insecure about their employment status do not buy homes, even if they have the financial wherewithal.
Given that NUMMI is shutting its doors and laying off 4,300 employees and CISCO just having laid of 700 employees, it seems pretty certain that we in Silicon Valley will be seeing an increase of default activities in the coming months along with an increase of unsold inventory.
