It is no secret that foreclosures in San Diego, CA and all throughout the nation are on the rise. Much of the contributing factor to foreclosed homes in San Diego is the creative financing that was available at the height of the real estate market.
Many San Diego residents who have experienced foreclosure, originally bought homes on stated incomes (not verified by the banks), no money down, and adjustable interest rates. Now those loans are adjusting, payments are going up, and people can no longer afford the home, which lead to the dreaded foreclosure. Since San Diego home values have declined, home owners cannot refinance because there is no equity and now may possibly face foreclosure. To avoid a foreclosed home, home owners options have been to do a “short sale” (where the lender agrees to take less than what is owed), or let the home go to foreclosure.
There have been a couple bright spots for these troubled potential foreclosure listings in San Diego. One is the HOPE Program sponsored by the government. You can go this foreclosure website to learn more about options if you are facing this issue.
Also, San Diego lenders certainly don’t want a foreclosed home, and are now more inclined to do loan modifications to keep people in their homes. If the borrower is facing foreclosure, they should contact their lender and ask for the loan modification department and explore this possibility with them. Our market is cyclical and this wave of foreclosures will eventually subside.
Avg. Sales Price: $387,350
Avg. Days on Market: 63
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