Central Coast foreclosures and REO properties are still piling up according to the latest statistics. Area data shows the last several months have seen a big upswing in Cambria foreclosures and other areas of the Central Coast.

So why aren’t loan modifications and the governments so called bail outs actually stopping or at least slowing down this problem? Unfortunately although there have been many Central Coast foreclosures halted and the home owners helped by independent Loan Modification companies there have also been reports of rampant fraud and abuse. Regrettably it seems many of the bad apples that made these loans in the first place decided to jump on the next big money maker and take advantage of these poor home owners a second time in he loan modification arena. That said I am sure there are plenty of reputable individuals and companies out there that have been offering loan modifications with the best intentions and have helped a great many people stay in their homes. But the good guys seem to be getting squeezed out by over regulation and strict rules that make it so unprofitable that the only ones staying in the business are those who have no regard for the law and just want to make a quick buck. This is terribly sad as from the business and home owners I have spoken to have the majority of the time only seen great results through these independent modification firms – as in real solutions that actually benefit the home owner and improve their situation.

Part of the reason that Central Coast bank owned properties continue to stack up is likely due to the fact that the banks are not offering or not able to offer the borrowers a real viable and helpful solution. The story from so many people out there is that their bank tells them they will help them only for them to wait 90 days or more to find out the solution offered by the bank normally results in a higher monthly payment! You do not have to be a genius to see how those stories are going to end. Some Central Coast foreclosure professionals point to the fact that under the governments programs the banks are actually being compensated for these so called modifications which are most often no more than rolling in past payments to the balance. The fact that mystifies me is why these home owners still hold so much faith and trust in these institutions that put them into these loans in the first place and now are expecting them to act honorable all of a sudden. Then there are other home owners still that take no action to save their homes and claim they are waiting for Obama to save them and send them a personal bail out check or don’t believe the banks will ever actually take their properties. Just look at the figures – Central Coast REO continues to rise and homes in the Central Coast and Cambria really are being foreclosed on.

What are the other options? Short refinances or short sales where the bank may be willing to accept a pay off for less than is owed are becoming more popular. However for those Central Coast foreclosures that are already in the process it is no doubt probably to late to qualify for a re-finance, and while a short sale can mean a great deal for the new buyer this doesn’t help the current owner save their home.