As we mentioned earlier this week, the city of Stockton, Calif., which some consider to be ground zero for the housing market crash, was trying to reach a last-minute deal with creditors to prevent the town from declaring bankruptcy. Unfortunately, those talks failed and Stockton is set to take over the title of Largest U.S. City to Go Bankrupt.
Back in August 2007, when many of us were still taking out adjustable-rate loans to pay for the water slide on our new champagne-filled jacuzzis, reports of impending doom were coming Stockton, Calif., a city that had suddenly jumped to the head of the foreclosure pack, with 1-in-27 homes being taken back by the bank. Now, five years on, it looks like Stockton could be due for another ignominious honor, as it stands to become the largest U.S. city to declare bankruptcy.
The foreclosure numbers for the first half of 2007 are in and Stockton, California leads the pack with 1 out of every 27 homes foreclosed on in 2007. Second is Detroit, with 1 in 29 and coming in third, Las Vegas with 1 in 31.