In the hard-hit housing market, there’s some good news and some bad news. First the good news: according to the Mortgage Bankers Association, for the first time since 2006, the number of loans in the process of foreclosure fell in the second quarter. But then there’s the bad news: even with these drops in default leading to foreclosure, still more early delinquencies are apparent all across the county as homeowners continue to struggle with high unemployment and job insecurity.
According to The New York Times, “The problem is no longer high-interest subprime loans, many of which have worked their way out of the system. The critical area now is prime loans, where defaults are driven by stubbornly high unemployment.” So while their home loan costs come as no surprise, without a steady paycheck, many Americans are falling behind on even the most predictable of expenses: their mortgage.
The new information about the detriments of early delinquencies is paired with a forecast that homeowners will have a tougher time selling the very homes that are draining their coffers. As the NYT reports, “Sales of existing homes in July fell by 26 percent from the same month last year. Sales of newly built homes dropped during the month by 32 percent from 2009. It was the slowest July for new homes in records stretching back to 1963.”
This bleak housing market means that millions could still lose their homes, with the associated impacts on consumers’ ability to spend, get loans from banks already beleaguered by another wave of defaults and be a part of a further kink in the chain of buying and selling large real estate assets that could have provide a much-needed shot in the arm to the wounded American economy.
Plus, the perils buying a home and falling into foreclosure only add to the inventory of homes at a time when there are already too many on the market. This situation spells a push down of already bargain basement housing prices that may force underwater borrowers to simply give up. As the NYT put it, “The reason people walk away from their loans in so-called strategic defaults is because they owe so much more than their home is worth. The more the market goes down, the more people are placed in this unhappy position.”
Fortunately, these “unhappy positions,” are precisely the scenarios for which bankruptcy was created. If you’re having trouble making your mortgage, living in a home that is hopelessly underwater, and/or residing in an area that is currently devalued and an eyesore for the foreseeable future, bankruptcy can help get you back on the right side of the proverbial tracks: allowing you to surrender your underwater home, negate your personal and financial liability, and move forward financially.
Don’t wait for your own personal housing bubble to burst. Join the millions of American homeowners who have found immediate help to keep (or flee) their hard-hit homes. If you have been hit hard by the lingering housing crisis, knowing a qualified bankruptcy attorney can help you to conquer your creditors and face your financial fears, yielding the right kinds of support, information and insights—at a low cost— for a viable and secure future beyond our own “Great Recession.” The bankruptcy experts 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.