For many families who struggled through the recession, avoiding home foreclosure was a priority. There is good news on the horizon for those in Florida who may still think bankruptcy is their best option but who also want to avoid home foreclosure in the process. That bright news is an increase in home values.
The appreciation in home values can mean a variety of things for homeowners. Mainly, homeowners who were underwater may not be anymore. This gives them more options once they have acquired a little equity in the home. If a homeowner files for bankruptcy, the discharging of other debts can help that homeowner stay current with a mortgage on a home that he or she could possibly sell rather than see lost to foreclosure.
The appreciation of home prices is not just good news for the individual home owner, but good news for overall foreclosure rates. At the peak of the recession’s aftermath, there were 1.5 million homes in foreclosure. But, there has been a 25 percent decline each year as the economy and home values continue to improve.
While the improvement has been great news for most, there are certain job fields and sectors that still struggle, such as sales and construction. For those who may see some benefit of the home price appreciation number or none at all yet, bankruptcy can be a viable option. Not only will filing for bankruptcy temporarily halt home foreclosure action in Florida, but it can free up funds to devote to back-due mortgage payments or fees so that a homeowner can keep his or her home.
Source: dsnews.com, “Recent Home Price Appreciation Has Led to Reduced Foreclosure Inventory“, Brian Honea, July 3, 2015