Kings County's foreclosure rates soared again in May

Reflecting the ongoing housing crisis in California, Hanford’s foreclosure rate rose in May, according to information released this week by First American CoreLogic.

The rate was 2.5 percent of outstanding mortgage loans, up half a percentage point from March and nearly double the May 2008 rate of 1.4 percent.

From June 2008 to May 2009, there were a total of 1,999 foreclosure filings in the Hanford-Corcoran statistical area, or approximately 5.48 per day, according to the report.

That compares to the previous 12-month period of June 2007 to May 2008 when there were 1,179 foreclosure filings, or approximately 3.23 per day.

The numbers include the county’s rural communities, some of which have experienced higher rates than Hanford and Lemoore.

Kings County’s problem is part of a larger national issue of unemployment, foreclosures and bankruptcies that is likely to hurt communities even after the recession ends.

The problem is acute in California, where foreclosure rates have been higher and the state faces an unsolved $26 billion deficit crisis.

According to a county stress index used by the Associated Press, California showed the most economic stress in May, with an average score of 16.

The index was calculated using a combination of foreclosure, unemployment and bankruptcy rates.

Under a rough rule of thumb, a county is considered stressed when its score zooms past 11. Kings County was slightly above the California average.

The highest stress scores for counties with at least 25,000 residents were Imperial County; Merced County; Yuma County, Ariz.; Lauderdale County, Tenn. and Stanislaus County. Merced and Stanislaus have endured some of the nation’s highest foreclosure rates in the past year — far higher than Hanford’s.

And even in good times, Imperial County, because of high agriculture-related joblessness, has always been among the most impoverished U.S. counties.

Hanford and Kings County have been saved from worse declines by state prison jobs and federal money flowing through Lemoore Naval Air Station, real estate analysts say.

The Associated Press contributed to this story. The reporter can be reached at 583-2432.