Foreclosures? Theeeey’re Baaaaack.
After several months of falling default rates, foreclosures were up again in August 2011, rising by about 7 percent compared to the month before. In fact, according to new numbers from the real estate firm RealtyTrac, some of the biggest increases were in the nation's wealthier places: suburbs, industrial hubs, as well as small town service worker centers, already hard-hit by the great recession.
According to a new report from PBS Newshour, that's bad news to anyone hoping for a speedy economic recovery. “The bumps represent different sets of problems, both disheartening. First, the increases in the wealthy communities suggest that people in those counties still may be leery of spending money in the months ahead - something they need to do if the economy is to turn around. Second, the rise in the poorer service worker counties suggest many in those places that have been struggling to ride out the recession may be starting to hit a wall financially.”
What’s also clear is that unless there is a sudden, significant and unlikely turnaround in the September foreclosure numbers the message is simple: “See the U.S. economic picture now? Don't expect it to be prettier by this time next year.”
In fact, wealth-building via housing booms may have also gone the way of guaranteed pensions, free healthcare, and secure employment. And now the timing is right for even speedier foreclosures as banks sort out the robo-signing saga that led to slower foreclosure notices. Now, the question becomes: “what will happen when lenders get more active again? Where will the foreclosures fall?”
This bleak housing market means that millions could still lose their homes—with associated impacts on consumers’ ability to spend, get loans and other credit from banks—and be a part of a further hindrance in the buying and selling large real estate assets that would provide a much-needed shot in the arm to a wounded and struggling American economy.
Therefore, debtors attempting to avoid financial ruin by waiting for housing prices (and equity) to increase may be waiting a long time. These perils of 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.
But as much as the timing is bad for mortgage holders, the timing is right for taking your financial future into your own hands with bankruptcy.
Fortunately, frequent foreclosures are precisely a scenario 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 through a personal bankruptcy.
Knowing a qualified bankruptcy attorney can be the first best step to conquer your foreclosure fears. The bankruptcy professionals 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 +1-919-646-2654 24 hours a day, seven days a week to set up your free consultation. Simply click on the yellow “FREE Consultation Now” button TODAY.