—
San Diego Short Sale Experts has noted a sizable climb in the number of Notice of Default filings in the Southern California area. Glen Henderson is a short sale realtor that tracks the number of monthly defaults for Southern California. This year there has been an average of about 300 Notice of Default filings (NOD) monthly. That all changed this fall. From September 15 to October 15 the number skyrocketed to 2,268 filings. That means the region is on track to double what was already an almost 400% increase from the average monthly filings.As a top San Diego short sale realtor, Glen suggests several factors have come together to cause the surge in NODs. These include Ghost Debt; the discontinuance of Free Payments; and expiring modifications. Everything that homeowners previously could depend on for avoiding foreclosure has disappeared. Homeowners in this situation have no alternative but to resort to foreclosure.
Ghost debt is debt that is owed to non-performing 2nd lien holders. Sometimes the old debts which people have forgotten move into an equity position. The obligations are acquired, and the lien holders are enforcing their right to collect. The 'free money' refers to the mortgage payments paid by the Keep Your Home California program which is now over. The State no longer makes the payments, but they still have to be made.
Expiring modifications are those from homeowners who have held two percent loan modifications. As these expire, homeowners are learning that their payment has jumped up significantly. They are unlikely to get another 2% modification. The average of the new modifications is more likely to be in the 4 percent range. In addition, homeowners are no longer able to submit short sale packages once the Notice of Sale is received, and hope to be saved from foreclosure. It is critical to work with an agent who knows the rules and has the right team in place.
Contact Info:
Name: San Diego Short Sale Experts
Email: Send Email
Organization: San Diego Short Sale Experts
Address: 2820 Camino Del Rio South Ste 316, San Diego CA 92108
Phone: (619) 777-6716
Website: https://www.sdshortsaleexperts.com/
Release ID: 466117
Google
RSS