Mortgage Defualts have Fallen in Stockton and Lodi
Mortgage and loan defaults have fallen to a three year low for California, Stockton and Lodi homeowners. This is the fifth consecutive quarterly decline. Mortgage default notices were down 44 percent from the same period last year. In San Joaquin alone default notices to home owners were down 43.2 percent. The first step in the foreclosure process is the notice of default.
In some locations in California actual home prices are increasing allowing homeowners to refinance their mortgages and not resort to foreclosure. This is not often an option for homeowners with loans taken out in the last three years where they owe more on their mortgage than the market value of the home. In San Joaquin County actual foreclosures are down 10 percent from the same period last year.
Decreasing home values and the inability to refinance or sell their homes was a major reason for foreclosure. Now the high unemployment rate is affecting the ability of home owners to pay their monthly payment.
Short sales have now become the dominate Homes for Sale in Stockton and Lodi on the Multiple Listing Service, surpassing foreclosure homes. Banks such as Wells Fargo, Wachovia and Bank of America are working with homeowners on short sales. Home buyers are now seriously considering short sales where as last year at this time a short sale was considered a bad word. Home buyers are learning that a short sale can be a better quality home and often in move in condition.
Home owners are wise to consider a short sale vs. a foreclosure. Just the impact on their credit alone can be an advantage to a fresh start. A short sale can be a complex process and it is wise for a home owner facing the possibility of default to consult their financial advisor and an experience realtor with short sale experience and training. The first step in the process is to establish the present market value of your home and your realtor can provide you with that information and then help your process and negotiate the many steps in a short sale. The Lilly Team is experienced and short sale certified. Please call us with any questions you may have or e-mail us at thelillyteam@comcast.net and ask for your free short sale kit.