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Foreclosure Fears Up in August

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The big news recently seems to be rising unemployment, with jobs coming back into focus as yet another election season begins to heat up. But a recent jump in another bad economic bellwether—home foreclosures—is a new cause for concern in these uncertain economic times.

According to a latest reports, the number of mortgage-default notices filed by banks climbed 33 percent between July and August -- the biggest single-month increase in four years, according to the data provider RealtyTrac.

As The Huffington Post put it, “Default notices are the first step in the foreclosure process, and the uptick in August may mean that lenders are beginning to clear the logjam that has held up home foreclosures since 2010. Last year's discovery of the widespread practice of "robo-signing" -- mortgage paperwork that had been authorized with forged signatures, or signed by people who hadn't read the documents in question -- set back the foreclosure process on a national scale, as lenders were forced to go back and re-examine thousands of filings. The damage wrought by robo-signing is still evident in RealtyTrac's figures for August 2011. Although default notices were up sharply for the month, they were still down 18 percent from a year ago, suggesting the process hasn't gotten back up to full speed.”

But what is expected to get “up to speed” is a return to delay-free foreclosures, forcing many more Americans from their homes, and exacerbating an already rampant real estate crisis. And while banks will get back into the business of processing hundreds of thousands of foreclosures, more and more homes will be placed on the market, saturating the industry and drying down prices even further.

According to HuffPost this is all a part of the recovery process. “Still, analysts say the market needs to get worse before it can get better, and an increase in foreclosures may be the first step toward that. Home prices are expected to touch bottom eventually and then begin to climb again, though experts are divided on how soon this could happen. Some predict a recovery as early as 2012, while others don't anticipate it until 2013 or 2014.A measure in President Obama's jobs bill, which is being considered in Congress this week, could relieve some of the downward pressure on the housing market caused by the abundance of foreclosures. The measure, known as Project Rebuild, calls for $15 billion to be set aside for refurbishing foreclosed and vacant properties, including residential buildings.”

So what do these mixed-messages mean for the millions of Americans seeking mortgage modifications and other homeownership help? That despite federal regulations, mortgage lenders still hold all of the cards and are therefore  have the upper hand on the people they service.

Since federal programs and bank policies aren’t helping, you may be wondering what can? If you’re having trouble making your mortgage, living in a home that will never have equity, and/or residing in an area that is currently devalued, bankruptcy can help get you back on the right side of the proverbial real estate tracks.  A bankruptcy will allow you to surrender your underwater home, negate your personal and financial liability, or make it more manageable to save your home sweet home and still move forward financially.

If you too have been affected by the housing crisis, knowing a qualified bankruptcy attorney can also help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost. The bankruptcy lawyers at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.

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