California is a dream destination for many, despite the rising costs of living and pricey housing. Many people dwell throughout California, enjoying coastlines, desert, mountains, and more. Unfortunately, the Golden State does pose a risk of homeowners opening a foreclosure letter one day. Defaulting on your mortgage payments in California means that, after a short while, a nonjudicial foreclosure process can be put into motion. Judicial foreclosures, or ones that are settled in the courtroom, are also allowed.
We are going to introduce some facts about living in California, as well as some resources for preventing foreclosure. Let’s have a look.
About Homeownership
An estimated 39.56 million people reside in California. Of that number, about 7,035,000 are family-owned homes. There are many counties in California that are highly developed, including San Francisco and Los Angeles. Those metropolitan areas often have a much higher cost of living, higher rent, and more people. Interestingly, those more expensive areas are not the places where foreclosure in California is the highest.
As you may already know, depending on where you live in California, the chance of foreclosure, as well the resources available, may be different.
Cost of Living in California
Living in California is costly. Most cities in California are much, much higher than the national average. For instance, Los Angeles is 41 percent higher; San Francisco is 35 percent higher; San Jose is 68 percent higher; and Berkeley is 56.8 percent higher. Many Californians will find that a large portion of their income is spent on housing. Though there is a broad range of prices in California, you can expect to pay around $355,000 for a house in Sacramento or $1,305,000 in San Francisco. Apartments are also more expensive than the rest of the nation.
On the other hand, Californians do not pay as much for utilities as some states. On average, a monthly electric bill costs around $100, whereas Hawaii runs around $149.00. Food and transportation are also moderately high, though this also depends on where you are located.
Have a specific question about Avoiding Foreclosure in California? Check out our Foreclosure FAQ’s section.
Foreclosure Rates in California
Right now, about 1 in every 14,444 properties in California are subject to foreclosure. Some areas are exceptionally high, including the five following counties:
- Sierra: 1 in every 2,388
- Modoc: 1 in every 2,625
- Trinity: 1 in every 2,938
- Tehama: 1 in every 4,560
- Plumas: 1 in every 5,247
Two metro areas in California had remarkably high foreclosure rates in 2020. Stockton, California was up by 161 percent; Chico, California rose 61 percent. In the first half of 2020, Bakersfield, California also ranked in the top 10 highest foreclosure rates at 0.27 percent. However, the whole of California saw a significant decrease in foreclosure—a 29 percent decrease.
Overall, that means that, while there are some metro areas in California where foreclosure rates are high, the state itself is doing well with controlling the rate of foreclosure.
Foreclosure Resources in California
In California, there are a couple of federal agencies with foreclosure prevention programs available. The two agencies are the Treasury Department and the Department of Housing and Urban Development (HUD). Within those agencies, there are also programs and organizations at work, including:
- Free Housing Counseling through HUD: provides free counseling with HUD-approved counselors. All are familiar with foreclosure law in California and may be able to negotiate with lenders.
- Making Home Affordable Program: offers loan modifications, refinancing, and other alternatives to foreclosures.
- Housing Education Program: training to avoid foreclosure before it happens. The education is either reduced or free to homeowners.
Did these resources not help you? Do you still have questions about foreclosure that were left unanswered? Why not give us a call at 1-877-494-9007? Our friendly team is more than happy to answer any questions and offer foreclosure help.
California Foreclosure Attorney
Sounds scary, but reaching out to a foreclosure attorney in California may give you some insight into your legal options. An attorney may help you understand your rights as a homeowner and options other programs may not explore. Attorneys generally offer a free consultation, this gives you the chance to get answers to basic questions before paying.
California Bankruptcy Attorney
Filing bankruptcy can protect a home facing foreclosure. But, this does not mean it is true for California or your unique situation. Chapter 7 bankruptcy in California may temporarily stop a foreclosure sale for 45 to 65 days after filing. This can give a homeowner time needed to catch up on mortgage payments and work out a solution with the lender.