Stockton Foreclosures for Sale Soared as Economy Slumped

by Donald Hanz on cities

Stockton foreclosures for sale climbed back up in November as the economy slumped, based on data from Associated Press, the California Department of Employment Development and a California-based foreclosure tracking firm.

In November, the rate of foreclosures in Stockton soared by 37 percent from October to one foreclosure for every 85 residential units, putting Stockton second only to Merced in a ranking of the largest metropolitan areas in the country based on foreclosure rates.

Stockton was one of seven California metro areas in a listing of the top ten foreclosure-hit metro areas in November, with Merced on top of the list and Modesto in third place. The other metro areas were the areas covered by Riverside, Bakersfield, Vallejo-Fairfield and Sacramento.

California, on the other hand, improved its foreclosure rate ranking, falling from second place to third, after Nevada and Florida. One foreclosure was filed for every 186 residential units in the state, dropping by 13 percent from the statewide pace in October.

The state, however, was still on top based on total foreclosure filings, with nearly 74,000 of its residential units getting hit with default or foreclosure notices in November.

One major reason for the continued rise in Stockton foreclosures for sale is economic hardship. According to the Economic Stress Index of the Associated Press in October, San Joaquin County, where Stockton is located, is eighth in a ranking of more than 3,100 counties based on economic stress.

San Joaquin scored 22.92 points, far above the 11-point threshold – the starting point for a county to be called stressed. Counties are graded from a range of one to 100 points based on unemployment, foreclosure pace and bankruptcy rate.

Other California counties in the top ten chart of economic stress were Merced County, which ranked fourth with 23.7 points, and Stanislaus County, which ranked sixth with 23.28 points.

Nationwide in October, the average economic stress level was 10.1, unchanged from September and marking a drop from 10.3 in August. The average stress level in October last year was only 6.9 percent. Around 37 percent of the 3,141 counties across the nation were considered stressed.

In October, the unemployment rate in the Stockton metro area was 16.1 percent, among the highest in the Central Valley. Yuba, Merced and Modesto were the only California regions with higher jobless rates than Stockton.

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