After more than four years of plunging home values hundreds of thousands of Florida homeowners will begin another New Year owing more on their mortgages then their homes are worth.
For those of you that may not know it;
Home prices are already 30-40% below their peak in the first quarter of 2006.
Several economists have recently predicted that foreclosures will peak in the New Year. Moody's Analytics chief economist, Mark Zandi estimated that there were 1.8 million foreclosed homes in the U.S. in 2010 and that the numbers will be even higher for 2011, but should peak at around 2.1 million.
Well isn't that comforting; foreclosures should be peaking this year!
I, for one, am predicting that based on the current efforts that have been made to stop the peaking, they will peak in 2011, again in 2012 and yet again in 2013.
The major reason home prices continue to fall is due to the foreclosures.
Since negative equity 'underwater' is the number one predictor of foreclosures, I'm thinking foreclosure peaking will lead to even more foreclosures in the years to come.
However there is a group that got something right; the economists at A. Gary Shilling & Co., who have predicted that home prices are expected to drop another 20% before hitting the bottom.
That all said my prediction for Florida is; it's going to get worse before it gets better.
In November alone, almost one out of five South Florida homes went into foreclosure.
From foreclosures to plummeting home values, to practically no new sales and a foreclosure freeze, you'd think Florida's housing markets have seen it all.
But you'd be wrong.
It's been the case for the past four years and will remain throughout 2011.
Foreclosures will spike in the upcoming months, we've already seen it in November, and will continue to see it throughout the New Year. Lenders froze all cases while it reorganized how it handled foreclosures. As I said would happen back in October, that's all been worked out now, so it will be full steam ahead in 2011.
Oddly enough there are those predicting that the government will provide new programs to help people stay in their home, if they can afford it.
I say that it's nothing more than government hype creating yet again, false hope.
After four years of promises and hope, the fact is that millions of families have lost their homes and remain in financial limbo. Why, because our government does not hold the banks and servicers accountable.
The government's initiative known as HAMP is a failure.
More homeowners have been bounced from the program than have been helped. The average borrower was lucky enough to get into a five-year plan and then end up owing more on their mortgage than they did prior to entering into it.
Everyone in foreclosure is desperate to get out of foreclosure.
It's incredibly stressful; and nobody feels good about it. People want it done, they want it over with, they want to be able to move on so they are drawn into modifications that have left them owing more and even further 'underwater'.
And don't believe for a second that the banks are beginning to see that it doesn't make any sense for them to take back your home.
As a matter of fact the banks are more interested in having you short sale the property then offering you a loan modification to keep you in the home.
So, if you are one of the many
on the fence, still
asking yourself whether you should hire an attorney,
consider this;
- We are all faced with the worst housing market collapse since the Great Depression,
- Your home is probably the biggest investment you made,
- You owe the bank much more than it's now worth,
-
If you 'Walk Away' the bank can legally pursue a deficiency for the next 20-years,
- 6.92 million U.S. properties are delinquent or in foreclosure,
- The government's initiative known as HAMP is a failure,
- Completed foreclosures, have risen for six consecutive quarters and continue to rise,
- And foreclosures are expected to continue rising as banks, servicers and the government fail to assist borrowers.
STOP believing that you don't need a
lawyer
, YOU DO!
Don't start off the New Year at a disadvantage by trying to represent yourself.
Consulting with an experienced attorney is the first step to begin restoring the financial security of you and your family in the New Year.
What most people still don't get is that this remains a complex and difficult situation to be in, and having experienced legal representation is exactly what you need.
Whether you're in foreclosure or not there isn't going to be a rapid change in Florida's housing market. I'm not trying to scare people, but everyone needs to understand that Florida's housing market is a real serious problem.
If you are one of the many individuals and families struggling to make mortgage payments, STOP TRUSTING YOUR BANK, and instead consider hiring an experienced debt relief and foreclosure defense attorney.
The Carman Law Firm can protect your rights, and get you the help you need. We will represent your best interest and handle all of the negotiations with your bank.
When you work with us, you will be working with a team who believes in bringing you all the information and skills we can. We consider it our duty to help you analyze your situation, and we will provide you with every detail to ensure you make the most informed decision. We can also assist you with settling your credit card debt for pennies on the dollar and provide active credit repair, helping your credit score rise as quickly as possible after a short sale or strategic default.
The Carman Law Firm can assist those in need of debt and mortgage relief. With many options available and trusted answers to questions that someone might have about regarding credit card debt, short sales, loan modification, foreclosure and strategic default.
Begin protecting your family today; Call the Carman Law Firm
at 1-800-763-0775 or email us at info@carmanlegal.com, get answers you need and schedule an informative and free comprehensive consultation on how the Carman Law Firm can help you.