Fewer Homeowners Facing Default, Foreclosures Down 12%

Here's one mostly-unreported reality to the so-called bubble: equity appreciation! An article in the Chron and SF Gate today discusses how even though some homeowners might be running into troubles paying their mortgages, when they look at the reality of their home's value, many have been able to sell, cure any defaults, and walk away with some money in their pocket.

"Notices of default are usually filed after borrowers fall several months behind on their mortgage payments; they mark the first formal step in the foreclosure process."

The important thing to remember here is that if you're falling behind, you don't have to lose everything. If you can sell your house before the bank gets ahold of it, you'll be far better off than if you think that they'd sell it and get full market value. A bank is only looking to cure the default and move on. They don't always hire the most aggressive agents and don't always push for the highest prices.

If you ever find yourself behind on your mortgage, feel free to call me up and pick my brain about what you might be able to do to keep your house or how we can sell it and save as much equity as possible. Remember, until the bank actually forecloses, it's not too late!

Of course, foreclosure happens to VERY few homeowners... But for those who actually hand their houses over to the bank, it didn't have to get so ugly... There's almost always a solution where the homeowner can come out ahead, while still paying off bad debt.