Tag Archives: mortgage

20% of SF homeowners spend 50% of income for mortgage

by Malou Liwanag-Aguilar/AJPress

SAN FRANCISCO—More than one out of five homeowners in San Francisco spends 50 percent or more of their income on housing. More than 7.5 million people—almost 15 percent of American homeowners with a mortgage—are spending half of their income or more on housing costs, according to a 2007 data released by the US Census Bureau last September 23. That number is up from nearly 7.1 million the year before.

In a report with the Associated Press, more that 4 million homeowners were at least one month behind on their loans at the end of June. Also, almost 500,000 had started the foreclosure process, according to the Mortgage Bankers Association.

A homeowner spending 30 percent or more of their income on housing costs is traditionally considered by the government and most lenders to be financially burdened. However, that definition now describes almost 38 percent of American homeowners with a mortgage, about 19 million.

San Francisco is one of the largest 100 metro areas analyzed by the Associated Press that showed populations in which at least 20 percent of homeowners spent more than half of their income on mortgage. Other places include California metro areas of Stockton, Los Angeles, Riverside, Oxnard-Thousand Oaks, and San Diego. Also in the top 10 are the Fort Myers, Sarasota and Orlando metro areas in Florida, and New York-Northern New Jersey-Long Island.   (www.asianjournal.com)

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FilAms Losing Homes in Daly City

by Cynthia Flores/Asianjournal.com

LOS ANGELES – A real estate research firm reported March 30 that Daly City, where immigrants make up 53% of the population, has the highest number of foreclosures in San Mateo County. Affected homeowners are said to be mostly Filipinos and Hispanics who have never owned a home before.

Almost 30 percent of the county’s homes taken back by lenders and put up for sale in February were in Daly City, according to an Examiner analysis of a recent report from foreclosureradar.com, a Web site that tracks foreclosure rates in California. The Daly City figures followed another report from the site indicating that foreclosure auction sales have more than doubled in San Mateo County in February over a year earlier, though sales have slowed since January.

Known for its huge Filipino American residents, Daly City recently experienced a larger number of first-time buyers with limited resources and riskier loans.

“They were much more susceptible to getting into loans that they didn’t understand,” said John Gieseker, a San Bruno broker with Prudential California Realty. “Immigrants have seen it as very important to own your own home because it’s a greater level of security, so they would push harder to buy something.”

The city known as “the gateway to the Peninsula” also had twice as many foreclosed homes than San Mateo, a city of comparable size with a higher median income and a smaller immigrant population, according to DataQuick, a real estate research firm.

Local housing experts said some immigrants were not given enough information about the risk they were taking and others were specifically targeted by predatory lenders.

Most foreclosures and default notices were concentrated around Mission Street, on the coast west of Skyline Boulevard and near King Drive at the city’s southern border.

“Everybody wants to live here because of our proximity to San Francisco,” Daly City Filipino American Councilmember and past mayor Mike Guingona said. “We can’t punish those people for wanting a piece of the American dream — we should accommodate them.”

(www.asianjournal.com)

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