Wouldn’t it be nice to finally be done with all of these foreclosures? The national headlines have reported this week that foreclosures have dropped 4.4% in October. That’s great news, right? We should all be jumping for joy that finally we are headed out of our housing crisis headed to higher ground.
When you look at our local numbers of foreclosures in the same time period, they look even better! In San Joaquin County we dropped from 615 foreclosures in September to 459 in October, that’s a decline of 25 percent! Stanislaus County won the foreclosure decrease of the month award with 525 in September dropping to 314 in October, that’s a whopping decline in foreclosures of 40 percent! Manteca saw a drop in the same periods of 42 percent!
So how come we are not all filling the streets with jubilation? Are we all just pessimists? Unfortunately it’s because we are all realists. Although it would be great if the drops in foreclosures were a permanent decline and sign of the future, the reality is it is a false drop.
When the robo signing controversy raised its head, many major banks had put a short moratorium on foreclosures while they investigated their foreclosure processes. Some of the banks that had the moratoriums in place, have now lifted them after stating that their foreclosure process is just fine or they have made the proper adjustments.
So what does this mean? Unfortunately it means that we are still in a housing crisis. How do I know that for sure? Manteca has 668 homes with a Notice of Default (NOD) reported with the county. A NOD is the beginning steps of the foreclosure process. Three months after a lender places a NOD on your property, they can legally place a Notice of Trustee (NOT) sale on the property. 319 of the 668 homes that have a Notice of Default in Manteca also have a Notice of Trustee Sale reported with the county! That is a large amount of homes that can hit our market at any time.
319 homes may or may not seem like a large number, if you add that inventory onto the 283 homes currently available in Manteca, it would take over six months to sell it all at our current average pace of 94 homes sold a month. That is all of course with out adding any other inventory in that time period.
Something else to consider is that even with 668 homes in Manteca in some stage of foreclosure, those number do not include everyone that is under three months behind on their mortgage, getting ready to miss payments, or who are heading in that direction. Make no mistake we are in some tough times.
Even with this news, there is still help. Where many homeowners are making a big mistake is seeking help way too late. Lots of homeowners are surprised when I tell them that there are lots of programs that they could qualify to help them stay in their homes without missing a mortgage payment. There is even help for those behind, and if your situation makes it difficult to hold onto your home, there are programs that can give you up to $3000 dollars in relocation funds to help you transition after a successful short sale.
Our housing crisis is not going to go away anytime soon, but the good news is that there is help out there. You are not alone. There are people who can help. For FREE no obligation information about a loan modification, short sale or other options available to you, please call me and my team at 209-627-0791 or go to our website http://alternative2foreclosure.com