The recovery of the housing market has been slow and steady across the country, though not without a few setbacks here and there. However, there is good news to be found with the latest home foreclosure statistics. While some areas in Florida and elsewhere continue to struggle with home foreclosure, the lower rates are seen as good news everywhere.
The latest report touches on the underwater mortgage issue. As of now, one out of 10 mortgage borrowers have an underwater mortgage, meaning that they owe more than the home is actually worth. However, just four years ago that number was one out of every three borrowers.
One reason foreclosures are on the decline is because people are in a better position to pay their mortgage rather than fall behind. In March, only just over 2 percent of loans were in the midst of foreclosure. That is the lowest amount since 2008. Overall, home foreclosure rates are down considerably across the country, actually more than 27 percent compared to a year ago.
While the housing crisis in Florida is still looming, good news about home foreclosure rates across the country is good news for all homeowners. For those who are still struggling and want to explore ways to keep their homes as the crisis subsides, there are numerous opportunities through government programs and loan modification possibilities. Filing for bankruptcy may also be a responsible option to overcome financial difficulties and map a course for a return to financial security. Filers can typically choose between a Chapter 7 liquidation and a Chapter 13 plan for reorganization of existing debt under the court’s supervision.
Source: The Wall Street Journal, “New Foreclosures Fall to Lowest Level Since 2006“, Nick Timiraos, May 5, 2014