Monterey County Faces Foreclosure Crisis

There has been a tremendous jump in default notices sent to homeowners in Monterey County, California compared to last year. The number increased by a whopping 260 percent this year. Even more disturbingly, recent reports reveal that foreclosures in Monterey County, CA went up 1011.8 percent in the last quarter of 2007 compared to the same period in 2006. There were 378 foreclosures in 2007 and only 34 in 2006. California is ranked as the fifth highest state in foreclosure filings and hit a 20 percent high in the fourth quarter of 2007.

Experts said that the enormous jump in both default notices and foreclosures was due to the risky loans made by lenders during the recent economic boom times without adequate financial information. Add to that the now falling prices of homes and we are seeing double digit increases in foreclosures per month. Additionally, ARM (adjustable rate mortgages) mortgages coming due and falling property values have contributed significantly to the foreclosure crisis in Monterey County, CA. To say that Monterey County's foreclosure problem is severe is no exaggeration.

The majority of foreclosures in Monterey are taking place in working class neighborhoods. The crisis began in June of 2007 and is predicted to only get worse in 2008.

Unfortunately the government of California is not currently providing any assistance to Monterey homeowners facing foreclosure. Other states have set-up some assistance for these homeowners but to date, California has not. As the foreclosure crisis continues to worsen, it is likely however that California will provide some relief to its homeowners. The Federal government is also working to put into place some solutions for both homeowners facing foreclosure and banks with real estate owned (REO) properties on their books.

Many Monterey County residences are either using refinancing or listing with real estate agents and selling their homes as other options to prevent foreclosure. Some homeowners are even just walking away from their homes because they are upside down with their mortgage and there is no equity present. Some Monterey homeowners facing foreclosure have no option but to accept a foreclosure on their credit and others have to file for bankruptcy.

Monterey homeowners facing foreclosure should educate themselves on what other options they may have to stopping foreclosure. They should also find a reputable foreclosure expert in their community to assist them in finding the best solution. The most important thing for homeowners who find themselves behind on their mortgage to do is contact someone immediately about assistance in stopping foreclosure on their home.