Foreclosures The Touches Both Rich And Poor

Posted in Foreclosures, November 7th, 2007 |

Marin County has not been left untouched by the foreclosure epidemic although it is not quite so bad as the rest of the region, the state or the nation. Novato however is seeing a lot of activity. During the third quarter this year foreclosures recorded a double jump. It is surprising that this has happened because the Marin property owners should have been the least likely to fall to the foreclosure blow. Here 172 default notices were filed during the third quarter. Last year there were 89 less listings. Marin showed 41 foreclosures in the third quarter to create a record. The last record was 39 made in the fourth quarter of 1992.

The waters are troubled. Many have turned up to fish for opportunities. But agents are not too optimistic. The number of bank owned units sitting on foreclosure are not too many. But others studying the situation carefully say that people do not really understand and gauge the measure of activity and bustle that is going on. Agents are comparing confidential notes exchanged with each other and opine that 14% of the total 376 listings are located in Novato.

San Rafael comes second with 3.6% of the 276 total foreclosure listings. This shows that except for Novato the trouble is not acute. The reason is that the people are paying for the enhanced dues out of their earnings – that is they are able to do so. There is a cushion to fall back on. However they have been financially stressed and strained – stretched to their limits. That cannot be denied.

Marin is tackling the foreclosure disease with the medicine of short sales. It is a method of coming to an agreement with the bank by which the latter agrees to accept less than what is due to it. By it, banks save money and time on innumerable foreclosed properties that are proving to be difficult to tackle. It is like owning white elephants.

Personal assets are also becoming targets because continuous refinancing has exhausted alternatives. Lenders are now beginning to sue for these when the sales do not cover the loan amount.

Another serious point to consider is that the amount saved by way of waiver comes under the tax dragnet and is regarded as income.

The situation is going through such rapid change that agents have to be re-educated about the procedure.