Foreclosure Defense Florida

When Foreclosures Slow Down? When Will Housing Recover?

A key question facing any party involved in the foreclosure crisis is when the conditions that have caused this problem will begin to clear.   The unfortunate facts are that for a variety reasons, borrowers will continue to receive notices of foreclosure and the residential home foreclosure process will continue for the foreseeable future.

The US Housing market has been in a profound slump for the past four years.   Having said that, this must be considered in the context of the fact that the average US home price nearly doubled between 2000 and 2006.

  • Since then the average has fallen about 30% nationally and 39% in Miami where about a quarter of all households with mortgages are behind in their mortgage payments.
  • More than 6.7 million US households or 13% are behind on their mortgages or in foreclosure.
  • About 20% of owners of single family homes with mortgages owe more than the current value of their home.
  • If a borrower loses a home in foreclosure, it will probably be three to five years before that borrower can qualify for a home mortgage insured by the government. (although I expect this requirement to be loosened.)

(See the related article in the Tuesday, November 17, 2009 Wall Street Journal Report)

Unemployment remains the highest in the US since the Great Depression and the housing market cannot post any reasonable recovery until something is done to arrest the unemployment problem.   The Federal Government has thrown billions of dollars at lenders and servicers and is spending even more on programs and problems that will have little or no effect on the unemployment crisis that grips the country.

For more information about foreclosures contact Matt Weidner at www.mattweidnerlaw.com

Leave a Reply