When a homeowner begins to fall behind on payments, the lender may foreclose on the property to receive payment for their investment. Foreclosures rose significantly during the housing market crash of 2008. Since then, the housing market in Orange County has steadily improved and the number of foreclosures has decreased. According to a news report in The Orange County Register, foreclosures this year have decreased dramatically when compared to last year.
A recent report by DataQuick Information Systems shows that lenders in Southern California seized or auctioned 45 percent fewer homes during the first quarter of 2014 than the same period in 2013. There were 3,689 foreclosures in Southern California between January and March this year compared to 6,757 in the previous year.
However, DataQuick reports that local lenders filed 1.8 percent more notices of default during the first quarter of 2014 compared to 2013. A notice of default is only filed after a borrower misses three or more months of house payments. It signifies the beginning of the foreclosure process if the homeowner does not take actions quickly. Homeowners can prevent the foreclosure by catching up on payments or by negotiating a loan modification.
If you are falling behind on payments, a loan modification may be your best option to save your home. Every two years, borrowers are allowed to request and receive a loan modification. During the loan modification process, the lender will evaluate if the homeowner needs a modification and what caused the homeowner to fall behind on payments. If successful, the loan modification will establish a new payment plan that allows the borrower to get back on track and start making payments.
Of course, not all borrowers are able to modify their loans and those who are unable to make payments could lose their home. If you are facing a foreclosure, there still may be time to save your home and prevent the sale of your property. Please contact an experienced Orange County foreclosure attorney to evaluate your options.