Foothill Ranch Foreclosure Report November 2010
Foreclosure inventory has grown steadily in two out of three categories in Foothill ranch during 2010. While Preforeclosure (Notice of Default filed) inventory has trended downward since August 2010 Bank Owned (REO) and Scheduled For Sale (Notice of Sale filed) have steadily climbed. While several of the largest loan servicers are still enforcing a foreclosure moratorium the 113 homes currently at Notice of Default or Notice of Sale stages in Foothill Ranch (as of 11/30/2010) will be increasingly in jeopardy as servicers lift foreclosure moratoriums and permanent loan modification resolutions that do not result in re-default continue to decline.
There are four potential resolutions for homeowners dealing with mortgage/financial hardship:
1. Hardship Resolved and you reinstate your mortgage by paying back all delinquent amounts and resume regular payments. Unfortunately this is the least frequent resolution as the job market and personal income remains flat and national unemployment remains at 9.6% (9.1% in Orange County).
2. Effective Permanent Loan Modification. You obtain an effective permanent loan modification that reduces your mortgage obligation by a factor great enough for you to maintain your mortgage payments on a long term basis. The key word is "effective". There is a mountain of data and anecdotal evidence that demonstrates taht loan modification as an overall strategy for long-term home retention is failing miserably. Get the facts about loan modification before considering this option and/or if you have struggled to obtain one for more than 3 months. HAMP Failing To Prevent Delinquency In A Durable Fashion - November 2010.
3. Short Sale. Although you will no longer own the home and will have to obtain alternative housing arrangements you will avoid the more damaging consequences and liabilities of foreclosure while maintaining a more dignified resolution that provides you with a fresh start and the ability to obtain mortgage financing again much sooner than if you allow a foreclosure to occur. It is hard to get "excited" about short selling a home... this is understandable. Protecting your financial future, though, should never be ignored even if the results simply prevent further damage. The benefits of short sale should be considered carefully and the short sale process well understood prior to choosing this option.
4. Foreclosure. Foreclosure = one or more of the following: Greater damage to your greater. Longer term damage to your credit (ask me about this!). Greater exposure to future financial liability for the loss incurred by your lender(s) (ask me about this too!). Most humiliating of the 4 mortgage hardship resolutions (you may think you don't care... but trust me you will). Understand the advantages of short sale vs. foreclosure before ever "choosing" foreclosure as an option. It may, in the end, be unavoidable as everyone has a different set of circumstances but opting for foreclosure will wreak the most havoc upon your present and future of all the options discussed in this post.
HAMP Failing To Prevent Delinquency
Visit the Foothill Ranch Real Estate pages for in-depth real estate and housing information specific to Foothill Ranch; including homes currently for sale, market reports, market trends, school information, property tax and Mello-Roos info, HOA info, community links, short sale guidance, foreclosure listings and community news and events.