One of the most widespread effects of the current housing market malaise is the “curse” of negative equity. This now ubiquitous occurrence of the real estate reckoning is a product of an underwater universe wherein a good number of houses all across the country are valued as less than what homeowners originally paid for them. And the effects aren’t just being felt in California, Las Vegas and Arizona, but are also drowning homeowners right here in the Deep South.
In fact, according to a new article by The Miami Herald, there have been dark clouds over the Sunshine State’s real estate markets for some time now as house-loads of average Americans face little light at the end of the otherwise tropical tunnel. For these Floridians, the crash of the housing market is personal.
“As more than $113 billion worth of home equity has vanished from South Florida’s housing market in the past five years, the number of homeowners with mortgages that are larger than the values of their properties has become enormous. More than 300,000 South Florida mortgages—or 43 percent of them—are currently underwater, the highest level in decades, if not ever. That’s about four times the number of homes in foreclosure.”
Unfortunately, South Florida isn’t the only hotbed for hundreds of thousands of helpless homeowners. From Raleigh, North Carolina, to Reno, Nevada, the nation’s underwater issues have further exacerbated a real estate market marred by tight credit, record-breaking foreclosure rates and staggering unemployment and underemployment. As a result, loan modification requests have skyrocketed, as has the foreclosure rate, and with them a once-taboo exit strategy—the strategic default—has re-emerged in earnest. But these impediments to an otherwise happy home have an under-reported effect—a lingering impact on the psyches and financial futures of the Americans it’s happening to.
“It has also brought about untold levels of stress for homeowners who bought or refinanced at the peak of the market and have seen their homes turn into depreciating investments. Because of the current turmoil in the market, many of these owners can’t sell their homes without taking a loss, and most won’t be able to break even for years, or decades.”
Fortunately, escaping the “turmoil” of a market full of bad mortgages without hope for rising “above water” is precisely the 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 mortgage 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.