According to MDA Dataquick, foreclosures in San Diego for August 2010 increased to 1026 from 889 in July (a 15.4% increase), and Notices of Default increased to 1988 from July’s 1664 (an increase of 19.5%)

While many analysts say it is too early to know whether there will be further increases in those rates, both rates are down signiicantly from August 2009 levels when foreclosures were at 1923 and defaults were 2658.

Note, however,  the recent suspension of foreclosure filings by GMAC, Chase Bank and others due to “robo-signing” of foreclosure documents by bank personnel will not likely have an effect on California.

(Robo-signing refers to the signing by bank/loan servicer personnel of documents for submission to Courts that attest to accuracy of foreclosure filings without their actually having reviewed those files.  That practice, recently discovered, has led to the suspension of foreclosure filings by these banks in 23 states.  Since most foreclosures in California are handled through Deeds of Trust (by the filing and publishing of notices), no court proceedings are involved (so there is no need for the filing of any documents with a court unless the homeowner raises an objection to the foreclosure.)

With the local economy still weak, unemployment at high levels, and additional loans coming up for rate adjustments,  notices of default and foreclosures in San Diego are likely to continue well above normal levels for some time to come.

So, if you do find yourself in a distressed position with regard to your home loan,  you will not be alone in that situation.  However, you should know that there are a number of options that may be available to you to avoid foreclosure, including the followng Federal programs :

• HAMP (the Home Affordable Modification Program);
• HAFA (the Home Affordable Foreclosure Avoidance program);
• HARP (the Home Affordable Refinance Program): and
• 2MP (the Second Lien Modification Program.)

 If you don’t qualify under the one of those programs, you may still be able to work out a solution with the lender.

One word of caution, there are many people claiming to be able to help you that are really scam artists.  So beware of anyone who asks you to sign your deed over to them, promises that they can achieve a specific result, or asks you for large up-front payments.     

 For Tips on avoiding scams, visit the Federal Reserve Board’s webpage at http://www.federalreserve.gov/pubs/foreclosurescamtips/default.htm.

 For additional advice and information on potential options that may be available, you may want to visit www.SaveYourSDHome.com.  The advice and information is free, and there is no obligation of any kind.

This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable as of the date of writing, but is not guaranteed. The views expressed here are Arthur Chatroo’s personal views and do not reflect the views of Realty Experts.  This information is provided as a courtesy to our viewers to help them make informed decisions.