Foreclosures Expected to Balloon this Month
Recent news reports have forecasted a significant increase in the rate of mortgage foreclosures across the country in the first month of 2011. According to National Public Radio, the forces that held foreclosures in check for the final months of 2010 are no longer at play and this year should see foreclosures picking up with a vengeance.
Here’s a look at what’s happened so far in the foreclosure world and what you can expect in coming months.
The Sad Saga of U.S. Home Foreclosures
While many economic indicators suggest that we’re finally tugging ourselves out of the recession that’s gripped us for years now, the state of the housing market suggests otherwise. Here’s a look at why.
- Robo-signing foreclosure scandal: In the last few months of 2010, a foreclosure scandal hit: it seems that, at many banks, the practice of “robo-signing” had become common for foreclosure paperwork. Lawyers questioned the legality of the practice and, in the meantime, hundreds of thousands of foreclosures were put on hold while the courts decided what to do.
- End-of-year foreclosure stays: Following that scandal came the holidays, a time during which many banks and lenders traditionally put a hold on foreclosure processing.
- Backlog of foreclosures in 2011: Now, of course, the holidays are over and the robo-signing cases have been more or less settled. And, according to NPR, as many as 100,000 homes could go into foreclosure by the end of January.
- Even more homes on the market: Naturally, increased foreclosures are bad news for the families directly affected by them, but they’re also likely to be problematic for the already glutted housing market. And, with mortgage lending standards tightened and unemployment still above nine percent, the chances of other families buying those homes any time soon are slim.
Is there Any Hope for Foreclosure Relief?
If you’re worried about losing your home to foreclosure, now is the time to take action. Consider the following.
- Visit a housing counselor: She can help you figure out what your options are and whether you can realistically catch up on your mortgage and stay in your home.
- Speak with a lawyer: An attorney can help you figure out whether or not Chapter 13 bankruptcy could provide you with sufficient means to halt foreclosure and work towards saving your home.
- Consider rescission: Ask your lawyer about the right of rescission, which could help you keep your home if your lender originated the initial loan fraudulently.
- Contact your lender: Whatever you decide to do, be sure to keep lines of communication between you and your lender open. While mortgage modifications may not always be an option, they can provide a realistic alternative when they’re practical.
Similar Posts:
- Mortgage Foreclosures & Delinquencies
- Foreclosures Likely to Top One Million This Year
- The Latest on Foreclosures & Home Sales in the U.S.
- Update: Arizona signs $25 billion foreclosure deal
- Oklahoma Supreme Court Remands Mortgage Case to Determine Notes True Owner – JP Morgan Chase v. Eldridge
Leave a Reply