Short Sales Lead to a Decrease in San Diego Foreclosures

California is ranked number 8 on the list of foreclosures in the U.S. for the month of January but the number of foreclosures in the state is down by 39% from December 2012 and down 65% compared to January 2012. San Diego County had the lowest foreclosure rate in six years in 2012 according to a report by DataQuick. Short sales surpassed the number foreclosure resales for the first time. Speak with a bankruptcy attorney knowledgeable in foreclosure defense if you are interested in your options.

One of the reasons for the decrease in San Diego's foreclosure rate is new mortgage legislation which requires banks and other home loan lenders to give borrowers alternatives to foreclosure. Several major banks were facing serious accusations of mortgage abuse by federal regulators which resulted in a $25 billion settlement. Many feel that the settlement agreement allows banks too much latitude when it comes to providing those with underwater mortgages some relief. The spirit of the settlement was to make it more possible for homeowners to keep their homes which a short sale definitely does not accomplish. In the eyes of some, replacing foreclosures with short sales is not really an improvement.

About San Diego Short Sales

The pros and cons of a short sale vary with individual circumstances. A short sale is the action of selling a home for less than is owed on it and is a viable way to avoid a foreclosure for many. If you owe more on your home than the property is currently worth and having trouble keeping up with payments then it may be possible to avoid foreclosure through a short sale. As noted above, banks are required to give more consideration to foreclosure options when it comes to a borrower who is in trouble on their home loan. There are several other options to avoiding foreclosure of your home so make sure you know the alternatives and what course of action is in your best interest by working with an attorney.

Consult with a Foreclosure Defense Lawyer Today

Time is of the essence when it comes to foreclosure defense and you should begin working with a bankruptcy lawyer skilled in foreclosure defense as soon as possible if you are having mortgage trouble. Our firm, the San Diego Bankruptcy Pros, is dedicated to helping clients meet their goals concerning debts. Contact our offices now to arrange a time to discuss your case with a knowledgeable attorney that may be able to help you avoid losing your home or prevent a foreclosure.