Rising Mortgage Delinquencies Causing Increasing Irvine foreclosures

Irvine foreclosures are on a tremendous rise, wrecking the area with an active increase rate as bad as 2/5 percentage rise compared to December, 2007. In the 5th straight month, filing of foreclosures has exceeded the 100,000 mark. As many as 109,652 properties totally in the country have come into being foreclosed, which is 35% more than in 2005. In an attempt to accurately calculate outstanding Irvine foreclosures, a count of number of mortgage loans active more than that of total number of households in a given area was done. Outstanding Irvine foreclosures were a whopping count of 5,991 in December, 2008 with mortgage delinquency on a high level jumping to 4.8 percent in December, 2008.  These loans have been delinquent for more than ninety days.
The borrowers facing financial difficulties become unable to pay up their monthly installments in time. Lenders find it necessary to foreclose their homes to claim their overdue loan repayment. Irvine foreclosure figures skew up when it does not account for the number of delinquent borrowers who end up contributing to the cause. Irvine foreclosure rates escalate when delinquent cases are realized. Most Irvine foreclosures are completed in six months or less, from when the loan is declared delinquent. The process of foreclosing such loans takes place in two months after such declaration.
•    As a first step, the notice of such default is recorded
•    The home owner receives a notice of the process of foreclosure with a notice of default
•    The foreclosure is then completed, after such record, in a period less than 4 months
•    If borrowers manage to pay back all outstanding amounts to the lenders, they can avoid foreclosures on their property
•    The foreclosure notice made public by posts in the newspapers and attempts to get new bidders at auctions
Many lenders are boggled at the enormous amount of delinquency prevailing. Although they have not made bad loans, joblessness due to unexpected layoffs and increase in unemployment percentages have been main contributors. Even financial institutions are finding it a massive task to process Irvine foreclosures in time. Some hopes were raised with reports of falling rates of foreclosures by ten percent throughout the country in January of 2009. However, activities of filing for foreclosures, default notices, banks repossessing homes and the rising rate of auction sale notices have put the figures at 274,399 properties during the month.