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Prairie Oaks Neighborhood
Folsom See’s High Notice of Default’s
There is no easy way to write this. June saw Folsom's second highest month of new Notice of Default's(NOD) filed. There were 77 NOD's filed in June. The highest month has been March 2009 with 86. The earliest they would be sold on the courthouse steps would be September or October.
Folsom's new Notice of Trustee Sale(NOT) for June came in at 46. The highest was again March 2009 at 59. But we have seen at least a few months that they have been higher than 46. The earliest these could be sold at auction would be July and August.
June also saw 28 homes sold back to the bank(foreclosed or REO). The highest is September 2008 with 35 taken back by the banks. From October 2008 till May 2009 Folsom was seeing under 20 homes per month going back to the banks.
If I map all of the distressed properties from NOD, NOT and REO, there is not one area that is immune. It seems fairly evenly spread out across Folsom.
The banks for the most part are taking longer than legally required to go through the foreclosure process. Whether this is due to them trying to work with the homeowners, or because they have so many to deal with I don't know. But if I were to wager a bit, I think it because they are overwhelmed with distressed properties.
Short-Sale vs Foreclosure – What you need to know
When a homeowner is at a point that they can no longer afford to keep their homes, many think their only option is to let the home be foreclosed on. There is another option, called a short-sale. A short-sale is when a home sale is negotiated with the mortgage company in which the lender takes less than the amount
owed. The foreclosure or short-sale affects homeowners differently. A few are:
- After a short-sale you are eligible for a Fannie Mae insured loan after 2 years, no restrictions
- After a foreclosure you are eligible with restrictions after 5 years, no restrictions after 7 years
- Credit applications do not ask if you have had a short-sale in your past
- Credit applications(Form 1003, #C Sec VIII) will ask if you have had a foreclosure or deed-in-lieu in the last 7 years
- Short-sales usually do not raise red flags regarding security clearances
- With a foreclosure, security clearances will usually be revoked, often times resulting in loss of employment
To receive a chart with more information about how a short-sale vs a foreclosure can affect you, and/or you would like me to explain the pros and cons of both options, please contact me. The earlier a homeowner does something, the more options
they might have.
I have obtained this info from other sources and it is currently accurate, but not verified. This info is subject to change.(if you are reading this 1 year from now, things might have changed). And individual effects may vary, and when it is something as serious as a foreclosure, I advise seeking legal counsel also.
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