There is nothing quite as devastating as losing a home to foreclosure. There are ways to avoid it, though, that we should all be aware of. San Diego foreclosures are growing more and more common, and now is the time to see what can be done to stop it. First, in the beginning stages when we believe we might be facing foreclosure, is the time to start looking into another location to live. To avoid foreclosure, leave the home and move somewhere smaller where you can make payments. This is not a failsafe way to stop foreclosure, however, because it is not uncommon that selling the home will not be able to result in enough profit to cover the remaining mortgage. Lending institutions are not eager to foreclose on homes because it is a huge hassle that is their last ditch effort to minimize their losses.
Next consider contacting a housing counseling agency. The US Department of Housing and Urban Development keeps a current list of HUD-approved agencies that are here to help counsel us with issues concerning our San Diego foreclosures. If our situation allows it, sometimes we can qualify for an FHA insurance fund. With this qualification, HUD makes a one-time payment which brings the mortgage payments current again, a huge blessing for those of us who really need it.
Also, before you take the leap into foreclosure, see if you can refinance your home and get under a different mortgage payment program. Loan officers can meet with us and discuss more affordable plans. Another great option to look into concerning San Diego foreclosures is something called special forbearance. Many of us may qualify for a new payment structure if we have increased out cost-of-living with something like unforeseen medical expenses or an income decrease. This sets up a reasonable timeframe to get payments made because lenders understand that life happens to all of us, whether we expect it or not.
Sometimes foreclosure simply cannot be prevented. In this case it is important for us to understand what happens next. The process of San Diego foreclosures is dictated by California laws which result in about a four-month process that takes place out-of-court. Since San Diego foreclosures can take place outside of court, lenders can sell a foreclosed property in Sand Diego immediately following the foreclosure process. This is because the lenders are not required to get a deficiency judgment against the defaulting borrower.