Notice of Default warnings surged in August

Los Angeles, California – October 24th, 2011 Mortgage servicers and banks have increased their efforts against homeowners that have fallen behind on their payments in what looks to be a new wave of foreclosures. According to Realty Trac Inc., the number of US homes that received an initial default notice, the first step in the foreclosure process, jumped 33% in August from July.
This spike in default notices indicates that banks are starting to take quicker actions against homeowners that have defaulted on their mortgage. Foreclosure activity came to a near halt this time last year when problems with faulty paperwork surface. Banks have worked these kinks out of the system and appeared to be prepared to fire up their foreclosure machines once again. Homeowners behind on their mortgage may see their days of free rent coming to an end in the near future.
A spike in foreclosures could potentially turn around the US housing market faster. Many leading economists believe that the faster we flush our system of these toxic loans, the faster we can return to building a robust real estate market. As long as there is a glut of distressed real estate on the market, the housing recovery will continue to move at a snail’s pace.
Any ideas with my activity in foreclosures continue to weigh down property values and create uncertainty among prospective buyers interferes that prices may further decline. Banks have begun sifting through a backlog of homes that initially entered the foreclosure process months if not years ago. That’s bad news for homeowners that have become used to missing payments for several months without the threat of a foreclosure in their rearview mirror. Some homeowners have stayed in the house for 2 to 3 years without making a payment. These days will soon be history.
California saw a 55% increase in homes receiving a notice of default last month. Banks are now on track to repossess some 800,000 homes this year alone. The top 10 states with the highest foreclosure rates in August are California, Arizona, Georgia, Idaho, Michigan, Florida, Illinois, Colorado and Utah.
Homeowners that are delinquent on their home loan should seriously consider applying for a short sale to avoid a foreclosure. Call Allen Brodetsky at Boutique Realty to learn how you can receive up to $3000 in moving assistance and help mitigate having to pay income taxes on the difference between your loan amount and what your house sells for. Allen Brodetsky he has successfully negotiated hundreds of short sales for both his clients and other realtors.
Boutique Realty, Los Angeles’ Premier Real Estate Company