A search on Yahoo Real Estate on the term San Ramon CA, shows 256 properties in the foreclosure process. A search on Danville CA, shows 129 properties in the foreclosure process.

We are being bombarded by foreclosure news stories. Congress is playing politics with the situation, banks are over spinning the amount of assistance they are offering and people are sill losing their homes.

It’s a mess, but how big of a mess is it really? To the homeowner in foreclosure it is a huge, total mess, but to the overall housing market what do the statistics really mean?

If the 1.2 million properties in the foreclosure process were foreclosed, that would represent less than 1 percent of U.S. households. Keep in mind, receiving a notice of default, puts your home in the statistics. Many of these homes never go through foreclosure.

In 2000, more than 60% of households didn’t even have a mortgage. Thirty five million of those were renters, 26 million people owned their homes outright – paid in full. None of these people are in danger of losing their homes to foreclosure.

At the end of 2006, there were about 51 million outstanding mortgages in the U.S. According to Loan Performance, 92 percent of the 2.1 million sub prime ARMs are scheduled to up this year. That sounds like a big number, but the total amount of ARM increases reflects only 2.6 percent of U.S. households.

Reading all the national news and hysteria around foreclosures and the housing market can get people worked up. Even in communities like Danville, San Ramon, Pleasanton, Blackhawk, Alamo and others along the 680 corridor where local housing market trends are far better than national averages.

According to Bankrate.com, three primary factors in California were significant declines in home prices, low housing affordability, and investor speculation.

Homeowners with loans in trouble or loans that even look like they may be in trouble, need to be aggressively pro-active. Homeowners planning on staying where they are for another five years should have nothing to worry about unless we have a complete meltdown of the U.S. economy, in which case we’re all in trouble.

Homeowners that purchased between 2004 and 2006, that need to sell are one group of homeowners that need to look at their situations very carefully. Expert, professional advice and local market trends are of utmost importance for these homeowners.

And while all of this is happening – investors and buyers are beginning to return to the market to gobble up those foreclosures that represent great deals in East Bay real estate.

It looks like many baby boomers are heading into the Golden Years with less gold in their future and more time in the Salt Mines.

Washington Post (04/27/07) In a trend blamed in some measure on escalating mortgage debt and medical costs, U.S. seniorspersonal bankruptcy at a faster pace than any other age group. A study from researchers at the Administrative Office of the U.S. Courts found that even though the number of Americans aged 55 and up expanded to 30.1 percent of the national population in 2002 from 29.2 percent in 1994, the share of seniors seeking bankruptcy protection swelled 45.8 percent to 14 percent are filing for from 9.6 percent over that same time frame. The study results are being brought to light at a time when other research is documenting how more older consumers are leaning on home-equity loans and credit cards to foot their medical bills.

In talking to a few of the lenders we use, there are options available for these boomers to still turn things around and not have to face a future of working with one foot in the grave. If you feel you are approaching such a situation – act now – before your options erode even further. Lending guidelines are changing everyday and becoming more restrictive – delay of game – may cost you retirement or worse.

Knowledge is Power!!