In the long, sluggish slump that has followed the real estate crisis, many people turned to bankruptcy to help save their homes. In particular, the automatic stay on creditors’ collection efforts that comes with a bankruptcy filing can help forestall a home foreclosure action by a mortgage lender.
The San Antonio area has been greatly affected by these events. How are things looking now, as we move into the fall?
Using foreclosure rates as a measure, the San Antonio / New Braunfels metro area appears to be in somewhat better shape than Texas as a whole. Our area is also in better shape than the U.S. as a whole.
According to the research firm CorelLogic, at the end of July, 1.30 percent of the outstanding mortgage loans in the San Antonio area are in some phase of foreclosure. This is down from 1.35 percent a year ago.
San Antonio’s foreclosure rate also compares favorably with the rate of 1.40 for all loans in Texas that have entered some phase of the foreclosure process as of July 2012.
Of course, such figures are small consolation to homeowners who are behind are on their mortgages. If you are in that situation, you need to consider all of your debt relief options – including bankruptcy.
It’s true that, with bankruptcy, your credit rating will likely take a temporary hit. But you can rebuild creditworthiness over time. And what you may find, as you deal with your lender, is that other options, such as mortgage modification, have limitations as well.
Source: “Foreclosure rates down in July, CoreLogic reports,” San Antonio Business Journal, Tricia Lynn Silva, 9-25-12