San Diego Law Today

San Diego County has seen a decrease in the foreclosure rate, but that may not be such a good thing to be seeing for a variety of reasons.

First, the mortgage lenders now have added the staff to complete the foreclosure process to sale. Meaning that more homes are being sold at auction.

Secondly, this has motivated homeowners who are struggling with their mortgages to sell before they go into foreclosure in an attempt to get the best price for their property.

Home sales are up as is the number of building permits, which clearly indicate a slow recovery. Interest rates are at one of the lowest rates which have helped boost home sales.

The nationwide trend may be a little different, however. The governmental plans to assist home owners have failed miserably. There is no other way to state it. The Federal Government has a complete inability to watch over mortgage lenders to ensure they comply with the regulations and help distressed property owners. Mortgage lenders are unmotivated to make the process timely or efficient. This only leads to a completely frustrating experience.

The trend is called “Strategic Default” and it effects even the most reluctant and proud homeowner. Once they have concluded that the existing mortgage is not going to be adjusted to make the home affordable, they plan the timing of the foreclosure. Often times this planning involves the school year, graduation, work relocation, etc.

The major question becomes “How much longer can I remain in my house until I am forced out?” This is where the engagement of a professional is so critical. Once the move becomes a reality, the timing of the move becomes the focus.

As an article about strategic default practices said, severe negative equity is a massive and corrosive problem across the country. If the value of the home is far less than the balance of the primary mortgage, then there is negative equity. If there is a second mortgage on the home, then the negative equity is far more acute. The problems that are associated with a second mortgage can be even more devastating as the second mortgage holder may, and probably will, pursue the collections of balance of their loan after foreclosure. This could also result in a heavy tax liability in the form of a capital gain for forgiveness of debt.

It is critical to engage the services of a professional San Diego bankruptcy firm early, long before the foreclosure begins and long before the liquidation of any retirement accounts.

Tags: Bankruptcy myths, Foreclosure

Last year analysts started calling the economic tsunami a “mancession,” as in a recession that has a bigger impact on men than women because jobs in traditionally male-focused industries such as construction and manufacturing were among the hardest hit.

But as this article points out, the recession has hit men and women alike, coming down hardest on families and couples. When one paycheck in a two-paycheck home ceases to exist, many couples — perhaps almost all couples — will struggle. And combine the job loss with other challenges of the economy such as credit card changes and the drop in the housing market, and you’re definitely in trouble. Thus, this “mancession” left plenty of women in financial hardship as they had to struggle to pick up extra jobs to make ends meet.

Another recent analysis revealed that although there are signs that the jobs are coming back, only one in five of the people who have been unemployed for more than six months have recently found jobs. That means that many of the people who were laid off during the “mancession” are still living without an adequate income.

The key to keeping ahead of the debt and the accompanying stress is to be proactive about taking charge of your finances. No matter when you were laid off, you can still follow the guidelines I laid out in “Four Things to Do As Soon As You Lose Your Job.” And, as always, the very best advice if you get laid off or are having trouble paying the bills is to come in for a free consultation with a San Diego Bankruptcy Lawyer.

Tags: Bankruptcy, credit cards, Foreclosure, san diego unemployment

At our San Diego law firm, we focus on education. That’s why we’ve started reaching out in the community to help individuals understand their financial options and professionals understand the impact of bankruptcy on their clients.

Please feel free to contact our office at 619.295.3322 to inquire about a presentation for your organization, workplace, association, real estate group, banking group and more.

For more information about my recent speaking engagements, click here.