The foreclosure problem that has devastated the housing market in California for the past two years continues to forge ahead, leaving behind on its path an increasing number of abandon and vacant homes. But the problem is not confined anymore to the housing market as an increasing number of commercial properties are placed on lists of bank foreclosures. Going around California, one could see an empty automobile dealership in Oakland, an unfinished and vacant housing development in Pittsburg and isolated hotels in Brentwood. All of these are mute testimonies to the unabated foreclosure problem that has infected the regional economy. From October 2008 to March 2009, commercial properties totaling $784 million were placed on lists of bank foreclosures. Economist Christopher Thornberg of Beacon Economics said that the increase in commercial real estate defaults represents a huge problem. Industry experts agree that the rise in commercial real estate defaults poses a challenge to the state’s economy. They explained that undeveloped, stalled or partially built commercial projects brought about by bankruptcy or foreclosures can weaken a community’s economic growth. Additionally, existing commercial projects that are in danger of being placed on lists of bank foreclosures may not attract new businesses or retailers to a city. And buildings that failed to be developed or completed because of financial difficulties may mean fewer construction jobs. Colliers International senior managing partner Edward Del Beccaro believed that the problem in the commercial real estate market will get worse if the rising unemployment rate will not be addressed. He said that fewer employees mean businesses need less space. And space means rent fees which translate to mortgage payments. In the first quarter of this year, the number of commercial properties on default increased significantly compared with the fourth quarter figures the previous year. In the second half of 2008, many East Bay projects, including office, retail, hotel, land projects and mixed-used, went into default. The final quarter of 2008 saw delinquent commercial property loans totaling $309.5 million in East Bay. Furthermore, commercial defaults in the first three months of this year reached a total cost of $473.3 million. Areas with a high rate of commercial properties on lists of bank foreclosures are Brentwood, Bethel Island, Bay Point, Concord, Clayton, Castro Valley, El Cerrito, El Sobrante, Livermore, Fremont, Oakland, Orinda, Hayward, Martinez, San Leandro, San Ramon, Richmond, Pittsburg, Walnut Creek and Union City.
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The number of commercial properties on lists of bank foreclosures in California continues to increase as the foreclosure crisis that also afflicted the rest of the country surge to a new level. Mortgages on commercial real estate that went into default totaled $784 million from October 2008 to March 2009.
Joseph Smith has been educating buyers on the finer points of lists of bank foreclosures at BankForeclosuresSale.com for over five years. Read information on finding lists of bank foreclosures in California .
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