In 2011, the country saw a slowing of the foreclosure crisis that had engulfed the country in the previous years. Any hope that the crisis had reached the bottom and the housing market was finally on the road to recovery has been tempered by the expectations of many real estate experts.
Real estate company Zillow believes that the housing market hasn’t even hit bottom yet. The company believes foreclosures will rise in this year and that housing prices will not bottom out until 2013. Mark Seifert, executive director of the counseling group Empowering & Strengthening Ohio’s People, told Reuters that he expects 2012 to be a “bigger year for foreclosures than 2010.”
One of the reasons experts believe foreclosures will increase over 2011 is that many large banks put foreclosures on hold during the recent robo-signing scandal. Now that a settlement has been reached, it is expected that the banks will resume foreclosures.
Reuters notes that the mortgages foreclosed upon in 2012 will differ from those at the beginning of the housing crisis. Early on, many of the foreclosures involved subprime mortgages, but now most of these mortgages are no longer in the market. This means that the expected foreclosures will involve people with “ordinary mortgages” who have been impacted by the down economy.
Whether you are currently in foreclosure or behind on mortgage payments, losing your home does not need to be inevitable. People struggling to make ends meet may have several options for keeping their home such as negotiating with their mortgage company and other alternatives to bankruptcy or filing for Chapter 13 bankruptcy.
Every situation is unique and there is not a “one-size-fits-all” solution that works for everyone. By speaking with an experienced bankruptcy attorney you can learn what solution(s) work best for you and your family.
Source: Reuters.com, “Americans brace for next foreclosure wave”, Nick Carey, April 4, 2012