Sacramento 95832: California's Foreclosure Hot Zone News 10 reports

Foreclosure activity in the first quarter of 2007 set a record in Sacramento County. And one Sacramento zip code may be the hardest hit in the entire state.Sagging home values and adjusting mortgages are largely blamed for the 3,077 notices of default sent to Sacramento County homeowners in the first three months of the year.And nowhere is the wave of foreclosure activity more dramatic than in 95832.A News10 analysis of statistics and property records provided by DataQuick Information Systems and ForeclosureS.com shows that in the first three months of 2007, more than two percent of the homeowners in zip code 95832 defaulted on their mortgages.A notice of default is the first step in the foreclosure process and is generally filed after several months of missed payments.At 22 defaults per 1,000 homes, 95832 may lead the state in foreclosure activity for the first quarter of 2007.Statewide zip code level default statistics were not available for the first quarter, but a similar analysis of DataQuick figures by the Los Angeles Times for the three-month period from November to January showed the highest pre-foreclosure rate was 19 defaults per 1,000 homes in a Riverside County zip code.During that same period, 95832 had the fourth-highest default rate in California.95832 is commonly known as Meadowview, a predominantly lower-income community. But many of the homes in the process of foreclosure sold for up to a half-million dollars or more less than two years ago.One third of the 57 homes in default in the first quarter of 2007 are in a subdivision called "The Meadows." Developer JTS communities marketed the project as a relatively affordable alternative to new home subdivisions in Elk Grove and Natomas.But many of the buyers clearly were still reaching beyond their means. And when their loans adjusted above the initial "teaser" rates, there was no equity to fall back on."They are people who were put in bad situations, put in bad loans," said Holly Hisel, a foreclosure specialist with Coldwell Banker. "I think that's where the majority of these are coming from."Hisel spoke to News10 in a bank-owned home on Richfield Way, which may be the hardest hit street in the hardest hit zip code.Of 23 houses on Richfield Way, five went into default in just the first three months of this year."It seems like I post (an auction listing) every other day on Richfield," said Bryan Moulton, an auctioneer with RSVP Auction Company.At a recent courthouse auction, a five-bedroom, four-bathroom 3,500 square foot house on Richfield Way that sold in July 2005 for $526,000 was offered by the bank for $295,000. There were no takers.It's hard to find a block on a street in the Meadows without a foreclosure. Real estate signs litter the neighborhoods.A casual inspection shows many of the homeowners in default walked away from their homes well before the auction date.But some are holding on and hoping for a miracle.Jacqueline Hippard spoke to News10 on the front porch of her home on Expedition Way that was just days away from a foreclosure auction."We're not going to just give up our money like that because we worked too hard for it," Hippard said. Hippard and her husband Jeffrey said they paid $10,000 in late 2005 on a lease-purchase option, but the owner of the house stopped making payments to the lender.The Hippards have hired a lawyer and are fighting the bank to maintain possession. Jacqueline Hippard admits it's a longshot."I'll just leave it in God's hands. That's all I can do," she said.