Stockton is one of the worst hit cities in the country. The decline in property tax revenue due to foreclosures and devaluation is crippling the local government and there appears to be no relief in sight. Real estate analyst Greg Pacquin of the Gregory Group says the rate of foreclosure is going to continue to escalate throughout the region for the foreseeable future.
"Depending on where you are in the valley sometime in the second to third quarter of next year we might see some light, but there are projects that it could last well into two thousand and ten."
Real estate agents say attempts by some major banks to work with home owners on the verge of foreclosure will help some residents. But there are a significant number of adjustable rate mortgages that are going to ratchet up at the end of the year. The banks won’t be able to save many of those owners because they owe much more than their homes are worth.