San Mateo is heading towards a very scary foreclosure crisis. The problem isn't banks foreclosing on homes (that peaked in 2010), it's banks not reselling the properties in a timely manner. In short, banks acquire foreclosed properties faster than they sell them. And almost all of these homes are completely neglected until the bank puts them back on the market. According to the SF Examiner, the "average delay between when a homeowner receives a notice of default and when the bank ultimately resells the property has increased from about 325 days in late 2008 to roughly 600 days in mid-2011."
"Banks are sitting on a lot of properties and they're not releasing them," said Becky Irwin, legislative aide for county Supervisor Rose Gibson. One theory is that banks aren't releasing the homes because they're trying to prevent a "continued decline in property values." While there may be some truth to that theory, we can also theorize that a home in dire need of repairs and with no exterior maintenance would have a pretty severe effect on the quality of life in a neighborhood that's sprinkled with neglected foreclosed properties. In other words, there goes the neighborhood. Godspeed, San Mateo County.
· Foreclosure crisis lingering in San Mateo County housing market [SF Examiner]