The economy may be boosting and foreclosures dropping for California residents. One of the reasons why foreclosures may be decreasing in California is due to stiffer rules and penalties on lenders. However, there are still many homeowners who are struggling with back mortgage debt. There may be relief for many homeowners to stop foreclosure.
More banks are willing to work with homeowners to help resolve back mortgage through short sales and loan modifications. In the last year, the amount of foreclosures in the Coachella Valley area has reportedly decreased and dropped almost 70 percent. Realtors have also noticed the trend through the types of homes they are selling. Last year, 35 percent of homes sold were properties that had some type of foreclosure activity while this year it is only 15 percent.
As far as the entire state of California, the amount of foreclosures had a 68.4 percent drop compared to last year. One of the major reasons for such a decline is tougher regulations for lenders in regards to foreclosures. Along with the foreclosure rate decrease comes with the increase in property values.
Many homeowners are still unable to pay their mortgage debts. However, when homeowners and banks are able to work together to fulfill financial obligations, they may be able to stop foreclosure. When negotiations are not an option, filing a bankruptcy protection may give a struggling homeowner a peace of mind. Based on the homeowner’s financial situation, they may benefit from filing a Chapter 7 to discharge their debt or file a Chapter 13 to reorganize their debt. Whichever decision is made, homeowners may wish to seek out assistance to ensure the best possible outcome.
Source: mydesert.com, “Coachella Valley foreclosures fall this year,” Mike Perrault, July 20, 2013