Foreclosures across the country shot up nearly 10 percent last month – and Riverside had the highest rate of any of the 20 largest metro areas.
Our Woodland Hills foreclosure defense lawyers aren’t surprised by this news‚ but it’s somewhat disheartening after reports in recent months that the economy was beginning to improve.
The increase was reported by RealtyTrac‚ which indicated that nearly 206‚000 homes across the country received filings last month. That included bank repossessions‚ auctions and default notices. It was the first marked increase in foreclosures since the beginning of the year.
Bank repossessions in particularly were a big problem. After reaching a four-year low in April‚ numbers again climbed seven percent to nearly 55‚000 last month.
The reason all this isn’t entirely shocking is because we knew that once the robo-signing fiasco was resolved‚ there was going to be a whole new rush of foreclosures.
If you’re not familiar‚ robo-signing was a technique used by banks in the wake of the housing crisis to churn out foreclosures as fast as possible. The problem was‚ they were systematically attesting to ownership of property that they either didn’t own or couldn’t provide actual proof of ownership. These abuses resulted in hoards of homeowners being illegally removed from their homes with little remedy.
The issues finally came to light in 2010 – two years after the crisis hit. And it wasn’t until just a few months ago that the banks reached a $26 billion settlement‚ allowing those individuals to receive at least some compensation.
But before that deal was inked‚ foreclosures slowed significantly‚ as banks became forced to prove the paperwork on file was proper and legal.
So now‚ it’s no surprise they are picking up.
In addition to the increase in actual foreclosure filings‚ the number of foreclosure starts also rose by roughly 12 percent. What that tells us is that this is going to continue to be a rough journey for many homeowners‚ who are struggling to hang onto their houses.
California ranked fourth overall in terms of the highest foreclosure rate‚ behind Georgia‚ Arizona and Nevada. However‚ Riverside was deemed to have the highest foreclosure rate of any of the top 20 largest metro areas.
It’s expected we’re going to see an increase of short sales as the crisis churns on.
Short sales can be a smart way to avoid a foreclosure‚ which can be a stain on your credit score. This can be particularly valuable if you’re upside down on your home.
In these cases‚ the bank will agree to accept the fair market value amount for the property‚ rather than the full outstanding balance. Your credit is left relatively intact‚ and you are then in a far better position to get another home‚ whether you choose to buy again or simply rent for a while.
That said‚ short sale can be a complicated process‚ and it’s not something you’d want to venture into alone‚ without solid legal counsel.
No matter what option you are considering‚ our Woodland Hills foreclosure defense attorneys can help.
If you are approaching a foreclosure‚ contact Woodland Hills foreclosure attorneys at Cal West Law to schedule your free consultation. Call (800) 568-0707.
Additional Resources:
Foreclosures spike 9% in May‚ By Les Christie‚ CNNMoney