Stockton, CA is a coastal city with approximately 243,000 residents, and it is the 13th largest community in the state. It has a mixed workforce that consists of both white and blue collar workers. It is also an extremely diverse city, and close to one quarter of the population consists of residents born outside of the United States. There are over 82,000 homes and apartments in Stockton, and property owners occupy 49% of them, renters occupy 45% of them, and the rest are vacant. The largest home variety in Stockton is the single family detached, and the most common number of bedrooms for a home is three.

The real estate market in Stockton, CA is extremely challenging and unpredictable, and this has created a number of short sales on primary and investment properties. A short sale occurs when the homeowner tries to sell their property for less than what they owe on it. The lender must agree to be “shorted” and release the lien for less than the amount they are owed. Many real estate agents in Stockton require the homeowner to complete a hardship packet. Once they receive it, they will meet to view the property and determine a list price. This is one reason that sellers should use a short sale expert, as they will know what price the bank will accept, as well as what price will attract potential buyers to the property.

As of November 2010, there were 5,963 foreclosure homes in Stockton, CA, and the average sales price of these homes was $130,132. In October 2010, 1 in every 119 housing units in Stockton received a filing for foreclosure. The highest rate of foreclosure action to housing units was in the 95212 zip code, where 1 in every 32 housing units received a filing for foreclosure. Following closely behind was the 95206 zip code with 1 in every 73 units. The zip code with the lowest rate of foreclosure actions was 95202, as they only saw 1 foreclosure action in every 295 housing units.

New laws are also being created in order to protect California residents during the short sale of properties. Beginning in January 2011, the first position lender will no longer be able to obtain a judgment of deficiency against the seller after the short sale of a property. The approval letter for a short sale and the fact that the lender accepts the funds will be considered payment in full by the borrower, and the deficiency will then be discharged. However, refinanced loans will not be affected by this changed.