The number of foreclosures in Southern California continues to decrease. According to CoreLogic, an Irvine-based data firm, the share of homeowners in foreclosure as well as those who are 90 days or more behind on payments has shrank to a three-year low in Orange County. In fact, foreclosure rates in Orange County have dropped by more than half over the last year. Now, only 0.47 percent of mortgages in Orange County are in foreclosure and 1.68 percent of Orange County homeowners are delinquent on their payments.
Foreclosure is the legal process in which a bank or lender attempts to recover the balance of a home loan from a borrower who has fallen behind on payments. Before the lender will take the home, the borrower will receive a warning that he or she is at risk. After receiving this notice of default, the borrower will have a short period of time to make an arrangement with the lender to pay back the money owed or to sell the property for less than it is worth.
For many Orange County homeowners, foreclosure is their worst nightmare. They have made a significant financial investment in their property and the last thing they want is to have their home ripped away from them because of financial hardship. For those who wish to avoid foreclosure, there are options available.
There are a number of options for Orange County homeowners that may be preferable to foreclosure. Forbearance agreements allow homeowners to delay foreclosure by agreeing to catch up on back payments. Loan modifications are a way for homeowners to negotiate for more reasonable payment plans. Short sales are an opportunity to sell a home at less than it is worth to help pay for the loan. A deed of foreclosure allows homeowners who are underwater to voluntarily sign over their property to the lender and just walk away.
None of these options are ideal, and they all have the potential to harm your credit, but they may help you recover faster financially than losing your home to foreclosure. Make sure you explore all of your options before making any life-changing decisions that affect your home, your credit and your future. An experienced Orange County foreclosure attorney at McFarlin LLP can help you understand your options. Click here to get in touch with our legal team and learn more about how you can prevent foreclosure.