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Bay Area Foreclosure Sales on the Rise

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Oct 22, 2008 9:30 pm US/Pacific

Bay Area Foreclosure Sales on the Rise

Reporting
Sue Kwon
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SAN FRANCISCO (CBS 5) ― Foreclosed homes are selling and contributing to a big uptick in Bay Area home sales. In Solano County 68 percent of homes sold had been foreclosed on in the last year. In Contra Costa it's 59 percent.

Meanwhile, foreclosure properties made up just under half of all sales in Napa and Solano Counties, while its 38 percent in Alameda County.

Realtor Jaime Wong bought 6 homes for family and clients in October. "You're getting it at pennies on the dollar," Wong said. "(Homes that are) $200,000 now were $400,000 a couple years ago in all cities," Wong said.

And while it's hard to measure there are reports that some people are dumping their homes rather than pay hefty mortgages on property that has lost so much value in the real estate downturn.

"I know a few people who say, 'My house is undervalued and I'm paying for a house that I paid too much,' and all of the sudden they are in the foreclosure process," Wong said. "They are seeing that they can sell the house, go on short sale now and buy homes cheaper."

They can't buy another home under their own name because anyone with a short sale or foreclosure on their record ruins their credit for up to 10 years. So Jaime said they invest through family. And some sit out and rent, hoping prices will stay this low when they are ready to buy again.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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© MMIX, CBS Broadcasting Inc. All Rights Reserved.