It might not surprise Florida homeowners that the number of people who lost their homes during the recent Great Recession was matched only during the Great Depression of the 1930s. During the last 10 years, data compiled by one source estimates that approximately 6,324,545 home foreclosure actions were completed. By comparison, a “normal” year would see only about 250,000 home repossessions by lenders.
Even though the market has seen marked improvement, foreclosures are still an issue in many real estate markets. There is even speculation that another housing bubble could be getting ready to burst in some areas. Because of this possibility, sources are remaining cautiously optimistic about the market.
Several thousand homeowners here in Florida might not share that optimism since they are unable to make their mortgage loan payments and could face a foreclosure action. Foreclosure does have an adverse effect on an individual’s credit score, but it does not mean that he or she will never again be able to obtain credit or purchase another home. A completed action will remain on a credit report for approximately seven years, but the more time that passes, the higher the likelihood that the homeowner’s credit score will rebound.
The same could be said for filing bankruptcy. Many Florida homeowners who are facing home foreclosure are also having financial difficulties with other debts. Through either a Chapter 7 or Chapter 13 bankruptcy filing, those other debts could also be dealt with while stopping a foreclosure action — at least temporarily depending on the circumstances. Many homeowners might want to consider taking advantage of the opportunity to obtain a fresh financial start — and possibly even being able to keep their homes.
Source: finance.yahoo.com, “How Many Americans Have Gone Through Foreclosure?“, Brooke Niemeyer, May 31, 2016