Foreclosure activity in Valley Center, CA. decreased at the end of 2009, but a lender moratorium on new foreclosures over the holidays is probably most of the reason for the drop.
This chart shows foreclosure activity for Valley Center from mid-September 2009 to mid-January 2010. 
These numbers came from Foreclosure Radar…and they’re as accurate as you can get.
You can see the lower number of foreclosures in January…but the November Notice of Default and Notice of Trustee Sale Filings are UP…the highest numbers for more than three months, and those homes are the ones we will see in February Notices of Trustee Sales and in March Trustee Sales…the final step in the foreclosure process.
The foreclosure timeline in California requires lenders to wait 122 days from the third missed payment before they can sell a home at a Trustee Sale. Every year the lenders hold off foreclosures during Thanksgiving and Christmas…so they don’t make the front page of the newspapers as they throw people out of their homes.
This creates a backup of homes that are waiting for foreclosures…so the notices you see from September through November will be turning into Valley Center foreclosures starting in February.
Most of the foreclosures you’re starting to see…and will see all through 2010…are related to job losses from the bad economy, and homeowners with ARM or Option-ARM loans that have loan resets increasing their payments. 2010 and 2011 are the big years for ARM loan resets, as all the 5/1 ARM’s are resetting this year.
Lenders are starting to favor short sales as an alternative to foreclosures. Wachovia has a program where they give short sale approvals in 35 days…that is a HUGE change…and they offer the homeowners up to $2500 in relocation assistance. Other large lenders…like Bank of America and Wells Fargo are going to have LOTS of pressure to adopt similar policies…and they hold the majority of loans that will reset this year…so that will be a HUGE benefit to homeowners that are late on payments and can’t afford to keep their homes.
The “Foreclosure Tsunami” is picking up steam for 2010…there are still lots of buyers out there…so don’t let anyone make you feel like giving up and allowing foreclosure. Short sales are a great alternative to foreclosure for anyone in Valley Center with a hardship and mortgage problems…and they generally cause less damage to your credit!
If you’re late on payments, or soon will be please give me a call…Bob Davis…760-525-0123…let me show you all your alternatives to foreclosure…and get you all the information you need to make the best decision for you!
Phone calls are Free…Knowledge is Priceless!
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