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Trustee agent Jared Thao, who conducts property auctions in Nevada City, reads orders of foreclosed homes on the steps of the Nevada County Courthouse on Friday.
Almost every day at around noon, an auctioneer stands in front of the Nevada County Courthouse and tries to sell someone's foreclosed home.
It's a reflection of the nation's continued housing crisis, which has hit California particularly hard, evidenced by the more than 358,000 homes that have gone into foreclosure auction this year, with 57,000 of them finding buyers.
In Nevada County, 434 properties are in pre-foreclosure and 280 are being auctioned for sale, according to the county clerk-recorder's office. A key indicator has been the 1,120 notices of default that have been filed in Nevada County in 2009, according to the county clerk-recorder's Web site.
Most days, the auctioneer has to postpone the sale of foreclosed homes because there are no bids. It's not for a lack of interested parties. The steps at the courthouse are often filled with interested citizens, either worried about their own foreclosed home or bargain hunters. The crowd size differs from day to day.
“I'm really not too sure about the statistics of it,” said Jared Thao, a trustee agent from Sacramento who performs the auctions at the Nevada County Courthouse in Nevada City. “It just varies, with four or five people to 20 to 30 people.
He said all winning bids must be paid with cash, or cashier's check, which, he says, “can be very pricey.”
Thao has been working in the business for a little more than six years. He offered his perspective on the auction sales in Nevada County.
“I got one bid (Thursday),” Thao said. “It was a good day.”
Several economic factors tie into the housing crisis, including a growing number of jobless homeowners. The county unemplyment rate stands at 11.3 percent, but it's 17.1 percent in Nevada City, a record high for that town of 3,000 residents.
“There are no jobs here obviously for our people,” said Nevada City Manager Gene Albaugh. “Our (unemployment rate) has been high for a long time. But this is the highest it's been.”
The state's unemployment rate is 12.5 percent, or 16.2 million unemployed people.
But that doesn't negate the bureaucracy that most homeowners get tied up in dealing with banks, said Stephen Munkelt.
“I started faxing documents to them (banks) along with financial forms in March,” said Munkelt, a lawyer in Nevada City whose home is in pre-foreclosure. “Part of the process is getting a loan modification. The bank has been so slow. I have loans that were taken out to buy the home in '06. So I'm trying to get the bad terms of that loan modified.”
In August, there were 95 notices of default in Nevada County compared to 47 in August 2008, according to Realtytrac.com. The increase, along with the number of trustee sales, has Nevada County ranked 37th for foreclosures in California — the third worst state for the statistic in the country.
“When people are losing their jobs or having pay cuts ... or more importantly they get involved in refinancing their very difficult loan rates, it can be tough,” said Realtor Mimi Simmons, who works for ERA Cornerstone Realty Group in Nevada City.
A big part of the increase in foreclosures has been negative amortization loans, which have interest that increases over time, Simmons said.
“People bought their homes with anticipation that the value was going to go up with their interest rates,” Simmons said.
Still, the Realtor is staying positive, expecting the numbers to get better in the next year.
“My crystal ball isn't very clear,” said Simmons, “but I'm rather optimistic that the interest rates are staying the same. And a lot of people want to stay in Nevada County. This county is one of the few places people want to be.”
To contact Staff Writer and Online Community Manager Zuri Berry, e-mail zberry@theunion.com or call (530) 477-4244.
It's a reflection of the nation's continued housing crisis, which has hit California particularly hard, evidenced by the more than 358,000 homes that have gone into foreclosure auction this year, with 57,000 of them finding buyers.
In Nevada County, 434 properties are in pre-foreclosure and 280 are being auctioned for sale, according to the county clerk-recorder's office. A key indicator has been the 1,120 notices of default that have been filed in Nevada County in 2009, according to the county clerk-recorder's Web site.
Most days, the auctioneer has to postpone the sale of foreclosed homes because there are no bids. It's not for a lack of interested parties. The steps at the courthouse are often filled with interested citizens, either worried about their own foreclosed home or bargain hunters. The crowd size differs from day to day.
“I'm really not too sure about the statistics of it,” said Jared Thao, a trustee agent from Sacramento who performs the auctions at the Nevada County Courthouse in Nevada City. “It just varies, with four or five people to 20 to 30 people.
He said all winning bids must be paid with cash, or cashier's check, which, he says, “can be very pricey.”
Thao has been working in the business for a little more than six years. He offered his perspective on the auction sales in Nevada County.
“I got one bid (Thursday),” Thao said. “It was a good day.”
Several economic factors tie into the housing crisis, including a growing number of jobless homeowners. The county unemplyment rate stands at 11.3 percent, but it's 17.1 percent in Nevada City, a record high for that town of 3,000 residents.
“There are no jobs here obviously for our people,” said Nevada City Manager Gene Albaugh. “Our (unemployment rate) has been high for a long time. But this is the highest it's been.”
The state's unemployment rate is 12.5 percent, or 16.2 million unemployed people.
But that doesn't negate the bureaucracy that most homeowners get tied up in dealing with banks, said Stephen Munkelt.
“I started faxing documents to them (banks) along with financial forms in March,” said Munkelt, a lawyer in Nevada City whose home is in pre-foreclosure. “Part of the process is getting a loan modification. The bank has been so slow. I have loans that were taken out to buy the home in '06. So I'm trying to get the bad terms of that loan modified.”
In August, there were 95 notices of default in Nevada County compared to 47 in August 2008, according to Realtytrac.com. The increase, along with the number of trustee sales, has Nevada County ranked 37th for foreclosures in California — the third worst state for the statistic in the country.
“When people are losing their jobs or having pay cuts ... or more importantly they get involved in refinancing their very difficult loan rates, it can be tough,” said Realtor Mimi Simmons, who works for ERA Cornerstone Realty Group in Nevada City.
A big part of the increase in foreclosures has been negative amortization loans, which have interest that increases over time, Simmons said.
“People bought their homes with anticipation that the value was going to go up with their interest rates,” Simmons said.
Still, the Realtor is staying positive, expecting the numbers to get better in the next year.
“My crystal ball isn't very clear,” said Simmons, “but I'm rather optimistic that the interest rates are staying the same. And a lot of people want to stay in Nevada County. This county is one of the few places people want to be.”
To contact Staff Writer and Online Community Manager Zuri Berry, e-mail zberry@theunion.com or call (530) 477-4244.
