Foreclosures – More than Just a Problem for Homeowners
As the number of foreclosure filings in the first half of 2011 dropped by twenty-nine percent from the same period last year, several problems still loom for those caught up in the foreclosure crisis. An unknowing person would think this reduction in filings means a better economy and more stability. But we know that’s not true. Unfortunately, the lower number of filings is likely the result of investigations into bank procedures during the foreclosure process. The unemployment rate is still high, and many people have nowhere to go. Once the “document review” is completed, the number of default notices being sent out is going to increase at a rapid speed.
There are several concerns that arise when discussing the current real estate market in conjunction with the number of foreclosed homes. The general view is that the housing market is not going to recover until the number of foreclosure properties dwindles to a manageable level. While the drop in the number of foreclosure filings helps keep the home prices above what they should be, as soon as the filings increase again, this will no longer be the case. Realtors agree that with the number of foreclosure homes available, price is still the main factor, above the condition and location of the home. What’s going to happen to those prices when there are even more homes available due to the foreclosure crisis? Once the filings go up, there will likely be the same backlog in the court system that previously gave birth to the infamous “rocket docket.” Then the cycle will start over again, with documents getting prepared at rapid speeds and attorneys questioning the validity of such documents.
This blog was written by Attorney Danielle Zemola of The Dellutri Law Group, P.A. Ms. Zemola defends homeowner in the foreclosure process and in the Bankruptcy Court.
