This year alone, we’ve seen a huge increase in the number of clients who are able to save their home from foreclosure. Even though the foreclosure filing rate is raising, lenders are allowing more homeowners to keep their home after foreclosure! Last year, on average, only about 70% of our clients were able to keep their home after missing payments. So far this year, we have seen that number increase to over 85%. A small portion of this increase can be credited to our new techniques and our ability to help homeowners through to foreclosure process, but we believe the biggest factor is the economy. Lenders are hurting from the poor economy too, so restructuring a loan to allow it’s continued performance is in everyone’s best interest. This is a drastic increase and we’re expecting those numbers to improve even more once the new laws are in place to help stop foreclosure These numbers seem to indicate a turn around in the foreclosure crisis, even though the foreclosure filings are still on the rise.
The foreclosure process usually begins with the lender filing a Notice of Default with the local court. This is what most people consider the beginning of the foreclosure process. This is slightly different from state to state, but most have a similar process. Lenders and loan servicing companies will still need to file this notice of default, so we’ll see this “foreclosure rate” continue to rise, until we can establish better lending rules and turn the economy around. But hopefully we’ll start to see more and more homeowners successfully stopping the foreclosure, even after the process has started.
In California, where the state is mostly Non-Judicial, we’re beginning to see a surge in home buying, where sales are up in some neighborhoods over 100% from last year at this time. Other states, like Florida, where they have a Judicial foreclosure process, are still struggling. Because California is mostly Non Judicial, the foreclosure process happens much quicker and gets the home back on the market almost immediately. Many credit this surge in real estate buying to investors who are buying the distressed foreclosure properties that are flooding the market. We’re likely to see a similar situation in Florida, once these foreclosure homes have a chance to clear the lengthy foreclosure process.
No matter what type of state (judicial or non-judicial) you live it, there are laws to protect you from foreclosure and prevent your lender from wrongfully taking your home. If you are facing foreclosure, then it’s important to act quickly and get help as soon as possible. There are many government programs to help with your FHA or VA loan and if you have a conventional loan, you may qualify for foreclosure loan workout plan or mortgage modification. When you are facing foreclosure, it’s likely that you can keep your home, you just have to approach your lender and find out what options are available to lower you monthly payment and get things back on track. In some cases, if you lender is reluctant to deal directly with your, you may want to consider hiring an attorney or professional foreclosure assistance company to work on your behalf.
It seems that slowly, we’re getting things turned around and with new legislation to help foreclosure victims just around the corner, we might see a glimpse of light at the end of the tunnel.