According to an article in Reuters , we haven't seen the bottom of the foreclosure crisis yet. Foreclosures are expected to rise as housing prices plunge, job losses increase and a new wave of foreclosures are set to hit the market over the course of the next two years.
The article said:
"We're not at the bottom and anybody that's trying to call the bottom right now is crazy," said Jack McCabe, a real estate consultant based in Deerfield Beach, Florida. "There's a huge foreclosure wave still ahead in the next 12-18 months and still a lot of excess inventory," he added.
The foreclosure crisis is at the heart of this year and half long recession that has hit nationwide. Initially, the foreclosure crisis was caused by sub-prime loans; but now job losses seem to be fueling the current wave of foreclosures. Many homeowners are facing job losses or pay cuts that are pushing them into foreclosure. Even those with stellar credit and exemplary financial records don't have the savings or access to credit to stop their slide into foreclosure, especially once they experience a job loss.
Many of these homeowners exhaust all of their savings just trying to stay afloat in an economy that hasn't been this bad in at least 25 years. It is important that homeowners facing job losses plan long-term. Currently, unemployment is lasting longer than expected especially for those in industries that are contracting.
Unemployed homeowners can expect to remain jobless for at least a year. Are you able to pay your mortgage for that amount of time without an income? How long will you unemployment insurance last? Will you be forced to raid retirement savings and college funds just to avoid foreclosure? If so, you may need to consider bankruptcy. Waiting until foreclosure is knocking at the door before investigating your bankruptcy options could prove financially fatal. Contact a Dallas-Fort Worth bankruptcy attorney today to find out how you can protect your home from foreclosure.