The mortgage loan Default rate and rate of Foreclosures is at an all time high in orange County, Ca. In July 2007, a survey was conducted to identify the primary reasons why home owners fall behind on their home loan payments. Responses were gathered from approximately 80% of borrowers who were facing foreclosure in California. Of those borrowers, the most common reasons they were facing financial difficulties were:
Curtailment of Income…………………………. 58.3%
Illness/Medical…………………………………… 13.2%
Divorce……………………………………………. 8.4%
Investment Property/Unable to sell………… 6.1%
Low regard for homeownership……………. 5.5%
Death……………………………………………… 3.6%
Payment Adjustments…………………………. 1.4%
Other……………………………………………… 3.5%
There has been much written as of late that adjustable rate mortgages that have recently reset to higher rates, are the main cause of loan Defaults. Looking at the above numbers certainly does not bear this out. Although, one could argue that some of the home owners who experienced a Curtailment of Income (58.3%) could have possibly kept their loan payments current if the interest rate did not adjust and increase recently.
If you are behind in your mortgage payments, please feel free to call our team on consultants, and we’ll give you our years of experience as to what options you may have to resolve your situation. Drop us an email at: Info@OCRealtyGroup.com or give us a call at: 949-388-3396
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