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July 11, 2008
Preventing Foreclosure
Although La Jolla has one of the lowest number of foreclosures in the country, I thought we would talk
about some preventive meausures to take to make sure your home does not get into foreclosure trouble.
Many homeowners in San Diego and, of course, the rest of the country, are having problems paying
their house payment. On Yahoo today, I believe the number was one in every five hundred homeowners are seeing
foreclosure as a real possibility. The numbers also are up nearly fifty percent from what they were a
year ago. Our state is one of several that have been hit the hardest. Other states include Arizona, Florida, Nevada and
Colorado. A new study suggests that the current housing market has not been this bad in fifty years.
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The amount of foreclosures is largely due to the subprime crisis, but it is by no means the only factor. New home construction
is at an all-time low, home prices in many areas continue to decline and people all over the United States are losing their job, or
they can't find one.
So what is the key to saving your home. ACT FAST! As soon as you think you are in trouble, that is the time to begin
taking steps to deal with the problem. Meet with an attorney, if you can, and go over the terms of your mortgage agreement.
The moment you realize that you are not going to be able to make a payment that month, call your lender and talk about
your options. Sometimes, you can either temporarily alter your payment schedule, or you may even be able to
refinance your home. The key is to make sure you talk to them.
You could also put your home on the market and try to sell it. In some cases, you may get less than what you owe. In addition,
your lender may be open to a short sale, which would allow you to sell your home for less than what you owe, but the lender
accepts the sale as full compensation.
If all else fails, you may want to consider filing for bankruptcy. The moment you file for it, the foreclosure process will stop. This
may also allow you to work out a new payment schedule and just might allow you to stay in your home. The downside of filing
for bankruptcy is it will remain on your credit for seven or more years.
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