Most of you are probably familiar about the current foreclosure issues that are plaguing the real estate market across the country. Fortunately, for those living in San Jose, California, the circumstances are not too harsh, YET, although neighborhoods east of Highway 87 are the most hit with about 2.6% of the households experiencing some stage of foreclosure. Local city officials are becoming concerned about these San Jose foreclosure homes because vacant houses can mean vandals and neglected homes can mean fire hazards and neighborhood eyesores. They are now cracking down on the lender companies who own these homes to ensure that they do their part in maintaining the condition of these homes so that the rest of the neighborhood remains safe and secure.

On a different note, San Jose has also received some $5.6 Million from the federal government as a means to stave off the foreclosure crisis. Though, unfortunately, this amount cannot be used to help those who have been foreclosed, it will be a resource for buyers, primarily first-home buyers, for purchasing their homes in specific neighborhoods. Those who are eligible for this financial aid include those with income limits of $88,600 for a one-person household and $126,600 for a family of four. They may use the money as downpayment and/or for rehabilitation costs.

Even with as much as 2,000 San Jose foreclosure homes, the market seems to be moving especially for those neighborhoods that have experienced a drastic drop in house prices. The higher the drop, the higher the number of sold homes which have resulted in the drop of median prices as well. Analysts believe that this change may be due to bargain hunters taking advantage of the drop in prices and move-up buyers taking advantage of low mortgage rates.

The situation may look bleak for a while especially if you feel that you’re on the verge of foreclosure but there are things that you can do to avert the inevitable without having to wait for the government to make its move to help you. The first and most important one is to talk to your lender or bank. They are the only ones with the power to help you and make things easier to handle.