Good news for the real estate market in San Diego County: the foreclosure rate is at nearly eight year low. For one of the first time since the beginning of the 2008 housing market bust, foreclosure notices have dropped below those in 2005. At Rent RPM, North San Diego County real property management specialists, we see this as excellent news and a major improvement for the county.
Banks file notices of default to start the foreclosure proceedings, and in November 162 properties were served foreclosure notices. In October the number was 1732. In November of 2012 over 430 foreclosures were issued in San Diego County. In November 2005 there were 344 foreclosures filed.
Andrew LePage, a real estate analyst that works for DataQuick, believes that the drop in foreclosures during 2013 was not only because of a recovering market, but also because of the California Homeowner Bill of Rights. The California Homeowner Bill of Rights became law on January 1st of 2013 which guaranteed fairness and transparency for homeowners in the foreclosure process. A summary of the Homeowner Bill of Rights includes:
It requires enhanced notifications so that borrowers will know their rights and how to contact their loan servicer to pursue a loan modification or other relief. It curbs “Dual Tracking” where loan servicers put homeowners on the foreclosure track, even when loan modification applications are under consideration. It facilitates better communication between borrower and loan servicer by requiring loan servicers to provide an accountable, consistent point of contact to help the homeowner through the loan modification and or foreclosure process. HBOR requires lenders to provide proper documentation before they can foreclose, and it gives borrowers tools to enforce their rights.
Looking at the investors market, a decline in foreclosures is always good. Not only is it a sign that the economy is recovering, especially from the 2008 recession which was motivated because of the housing bubble bust, but it also means that properties are gaining equity and less likely to default.
Rent RPM is a real property management company that operates in Northern San Diego County and takes a vested interest in real estate news, property rights and information, as well as tenant rights and leasing information.