Though many may think of it as a relief that the rate of foreclosures in California has slowed down in the last month, but the ground reality is something different. Even though the foreclosure properties reported a decrease in rate, but still it doesn’t help the situation because according to reports, the home owners are failing to pay their mortgage installments. The failure to pay on the part of home owners nullifies the drop in foreclosures rate.
How is the situation still in favor of foreclosures? Unemployment and home values lesser than what people owe to lending institutions are factors which is leading to mortgage payment failure and increasing foreclosure chances. As long as the mortgage payments are not made, even a decrease in foreclosures rate doesn’t hold a promise to improve the situation. If mortgage installments are not paid on time, then it would ultimately lead to foreclosures. Thus, even a dip in the rate of foreclosures for a month does not help because defaulters are increasing.
Lenders are in a fix: The lenders are in a fix as to how to deal with the situation. They still need to deal with the faulty payers of mortgage. In the end it leaves them only with one option that is, to foreclose the property. Even the time taken to foreclose a property by the lenders has increased than the previous year.
Great opportunity for those who are looking forward to buy foreclosed property: The non-payment of mortgage installments on the part of the home owners clearly indicates that it is still a very good time to invest in foreclosed properties. Also, California is a great place to live in, with some of the best neighborhoods and best education universities. So you can buy a foreclosed property in California to settle in it. Foreclosed properties are usually sold at very cheap rates as the lenders want to recover their money and get off with the property as soon as possible. You can use this to your advantage and buy a foreclosed house at a very less price than its original price. Thus, this is a very right time to purchase a foreclosed property.
