When a homeowner falls behind on his or her mortgage payments, lenders have the ability to initiate a legal process that puts the home up for auction so they can receive financial compensation for the unpaid loan. That, of course, is the foreclosure process, and according to the figures from the third quarter of 2011, it's one that Californians are facing in enormous numbers.
Overall, the number of United States home sales that were conducted while the residence was in some stage of foreclosure fell to 20 percent in the third quarter of 2011. This was down from the 30 percent observed during the same three-month period in 2010, according to the latest Foreclosure Sales Report by RealtyTrac, an online foreclosure marketplace
There were 62,583 Californian homes sold that were in foreclosure or owned by banks in the third quarter of 2011, which, according to the report, accounted for 44 percent of the Golden State's total residential sales in that time frame. That percentage was the second highest among all states, trailing only Nevada, where 57 percent of housing market purchases were on foreclosed homes.
Sales of these bank-seized homes may be unfortunate for the original homeowner, but they allow others to purchase homes at a huge discount. While the national average price of foreclosed homes was 34 percent below that of regular residential sales in the third quarter of 2011, California's bay area represented one of eight metro districts in the country where the sale prices of foreclosed homes were discounted by more than 50 percent.
California residents that have been warned by lenders that their property may be sequestered if they can't meet their future monthly payments may benefit from filing for bankruptcy. Though every situation is different, a Chapter 7 bankruptcy filing could possibly delay a foreclosure, while a Chapter 13 may save the home altogether.
Californians that are facing possible foreclosure proceedings should use a trusted lawyer referral service to find a qualified bankruptcy attorney that can help make an informed legal decision about what's best for their finances.
Attorney Search Network is a California state bar certified legal referral service that helps clients find an attorney for nearly any type of case, whether they require a family lawyer, bankruptcy attorney, estate planning attorney or criminal lawyer.
