The first step in any foreclosure is to receive an initial default notice. The number of homes across the country that received an initial default notice increased 33% in August from July. It was the largest monthly increase since the housing bubble crashed back in August 2007. In places like Tallahassee, Florida, the spike was most evidence in that an additional 81% of homeowners received default notices.
A closer look at those numbers reveals that the largest increase of foreclosure claims came from Bank of America. By taking action on its foreclosure pipeline, Bank of America claims it is setting the stage for a industry wide housing market recovery.
Additionally, Bank of America recently entered into an $8.5 billion settlement with a group of large investors who claimed the bank had sold them poor quality investments based on faulty mortgages. Clearing the backlog of foreclosures and defaulted loans is a key part of the terms of the settlement.
Bank of America has to reduce the number of risky mortgage loans and also find 3rd party companies that can help speed up the process. That includes helping homeowners modify their loans or moving defaulted parties into foreclosures and pushing for foreclosure sales.
The current real estate market, and ongoing foreclosure, and housing, crises, presents all sorts of issues that must be properly navigated by a struggling homeowner. Our Miami foreclosure defense lawyers have assisted many homeowners in buying enough time to reach the solution that is right for them. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it.