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We practice CONSUMER BANKRUPTCY
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We practice CONSUMER BANKRUPTCY law exclusively. 

One of the top Bankruptcy Filers

in the Orlando Area

One of the top Bankruptcy Filers

in the Orlando Area

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  4.  » Home foreclosure rate still high with distressed mortgages

Residents in Florida and others around the nation have witnessed much improvement in various indicators over the past decade since the housing crisis.  For example, the home foreclosure rate for the total housing market decreased 22 percent in the second quarter. However, a particular niche of the market is still experiencing distress. Foreclosures of severely delinquent mortgages purchased by investment companies are increasing.

In 2010, at the peak of the housing crisis, institutional investors began to purchase delinquent mortgages at government auctions. Homes that had lost significant value during the housing crisis could be purchased at severely reduced rates. The practice was met with opposition as many believed investors should not be allowed to benefit from the crisis.

The auctions were intended to benefit all parties involved. Many homeowners were hoping to get loans modified after their loans had been purchased. Communities anticipated that revitalization in their areas would occur while investors acquired lucrative properties. However, recent analysis revealed that foreclosures at several institutional investors have steadily increased over the past several years.

While these numbers do not necessarily represent the overall market, they do confirm that the crisis is not entirely over. They reveal that, no matter what company purchased the mortgage, some will end in foreclosure. These distressed mortgages may be held by homeowners that are frustrated. They are no longer dealing with the institutions from which they originally obtained their mortgages. Advocates contend that homeowners and communities would be better served by organizations dedicated to helping them.

Those experiencing financial difficulties often want to avoid home foreclosure and remain in their houses. A Florida bankruptcy attorney can help homeowners understand all the options available to them. A knowledgeable lawyer will work with clients to help them regain financial stability.

Source: marketwatch.com, “Here’s what it looks like when the foreclosure “pig” moves through the housing-crisis “python”“, Andrea Riquier, July 31, 2017