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