As the economy continues to improve and equity continues to increase, the number of foreclosures in San Diego County almost reached an eight-year-low in June. In fact, lenders foreclosed upon just 134 properties in June, which is down significantly from the 2,004 foreclosures that were made in July 2008. While foreclosure notices did increase from 419 in May to 424 in June, the number of notices are still down by more than 35 percent when compared to June 2013. These figures are also significantly less than they were when they peaked at 3,832 in March 2009.
While the number of foreclosures in San Diego County are on the decline, you still may find yourself facing a foreclosure. If so, it is important for you to know more about the foreclosure process.
Explore Other Options
Before going through foreclosure, be sure to look at the other options that may be available to you. For example, if you are in pre-foreclosure and you have built equity in your home, you may be able to refinance your loan so you can develop a new repayment plan that you can handle. Another option is to sell your home and then pay the lender back with the money you make from the sale.
If you owe more on the home than what it is worth, contact your lender to see if you can sell your property as a short sale. If the lender agrees to a short sale, it means you sell the house for its current value and give the money to the lender. While this may not be enough to repay the full loan, the lender agrees to write off the rest of what you owe. While a short sale will still impact your credit, it will not hurt your credit as much as a foreclosure.
If a foreclosure is unavoidable, contact your lender and ask to move the process along as quickly as possible. While you may want to drag your feet on the process in order to stay in your home longer, completing the foreclosure process quickly will allow you to start repairing your credit sooner. Furthermore, completing the process quickly can help reduce how much your credit is damaged.
Repair Your Credit
After going through a foreclosure, you need to start repairing your credit right away. The first step you should take toward achieving this goal is to review your credit reports. Next, begin paying off your debts and paying off your credit card balance. Finally, make sure you are paying all of your bills on time. To help you with the process, it is a good idea to create a budget that you can follow.
By taking these simple steps and proving that you are responsible with your finances, your credit will be repaired in no time. In fact, many homeowners who went through the foreclosure process find that they once again qualify for loans within a few years of demonstrating their financial responsibility.