Like any statistic, though, there’s room for analysis. This number includes foreclosure filings, default notices and actual foreclosure sales. Because of this, the number may be a bit inflated, since when most people think of foreclosures they think of actual sales where ownership is transferred.
Some of the borrowers who have received default notices will catch up on their payments. Others who are close to sale may file for Chapter13 bankruptcy in order to put the arrears into a bankruptcy plan, stop the foreclosure, and move on paying their monthly mortgage payment. Some borrowers will also complete a short sale, where they may find a buyer and get the bank to accept less than they owe in satisfaction of their note.
However, even if the number is inflated, it still reminds us that foreclosures will continue, even as the economy hopefully bounces back. If you are facing foreclosure and don’t know where to turn, consider discussing your situation with a bankruptcy attorney. My firm meets with a lot of people who are threatened with foreclosure and there are options available to you.
Submitted by: Kerry Hammond, Esq. Bankruptcy Attorney