Washington DC Foreclosures Soar
June 25th, 2008 by 
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As the nation strived to overcome the hurdles brought about by the mess in the housing sector, the foreclosure rate of Washington DC seem to be moving at warp speed. In fact a year to year analysis report showed that the region currently has the fastest growing rate in terms of foreclosure.
Eighteen months ago, foreclosure in this area was unheard of. But as the subprime market collapsed due to predatory lending practices, Washington found itself with thousands of foreclosure filings. Statewide, the number of foreclosure filings per 10,000 homes has jumped to 131 from 23. Nationwide, the average filing increased to 87 from 58.
For most local experts, the foreclosure situation in Washington has not yet hit rock bottom. They are expecting more and more homes entering some stage of foreclosure in the coming months especially with the rising cost of living and declining home prices.
Dealing with the current issue at hand might involve collective efforts from state officials, non-profit organizations and lenders. Troubled homeowners are also encouraged to seek help and not simply let the lender repossess their properties.
Struggling homeowners actually have several options they could explore in order to avoid foreclosure. Most of the options involve negotiating with their lenders in order to change some, if not all, of the mortgage terms in order to make payments more manageable.
Another popular option is to do a short sale. Of course, this option will require approval by the lender. Typically, a short sale transaction involves the sale of the property at an amount that is not sufficient to cover the mortgage debt.
The lender, in this case, agrees to forgive the difference. This option allows the homeowner to avoid foreclosure while the lender saves a considerable amount in foreclosure costs. But, keep in mind that there will be some additional taxes for this transaction since the IRS will consider the forgiven debt as taxable income.
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