Foreclosures in Bakersfield; How Not to Survive Foreclosure Downturn

The foreclosure mess in Bakersfield, California shows us exactly how not to survive the real estate downturn…

upside down mortgagesBakersfield, California was once the hottest real estate market in the country, before it suffered a foreclosure downturn.

That was then- early 2005.

Now the town located  two hours from LA is facing an unemployment rate of 15 percent and an inventory of 35,000 vacant lots.

Those numbers are correct and are verified by this Wall Street Journal Vid.  (I know, I had to go back and watch it twice myself to get over the impact.)

People already in foreclosure, and some facing future foreclosure, are upside down in their mortgages.  That’s because they bought on the high curve.  That was happening when many prices shot up by one third in value in only twelve months back in the ancient times of 2005.

See WSJ Video about Bakersfield Upside Down Mortgages
Is there a lesson here for the rest of us?

Yes, and you and I know what it is.

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