The news may proclaim that the recession is over, but the housing market has not yet bounced back from the brink. In the last several months, foreclosures have been on the rise all over the country. When faced with the possibility of losing your home, bankruptcy or loan modification can help keep lenders at bay. Here is a look at some of the economic forces that are increasing the foreclosure rate in America and how you can keep your home and stop the harassing phone calls once and for all.
Economic Forces at Play
After reaching a 25 billion dollar foreclosure fraud settlement earlier this year, banks resumed sending out foreclosure notices to millions of homeowners around the country. According to Business Week, the rate of foreclosure rose 1.5 percent in May compared to the last six months of 2011. While many economists note that the rise in foreclosures is good for the overall housing market as it allows housing prices to fix themselves and for the supply of available homes to increase all over the country, scared homeowners facing foreclosure might not agree.
How to Keep Foreclosure at Bay
There are a number of federal assistance programs that can help modify your mortgage. These are administered by the Making Home Affordable program and are designed to aid millions of Americans with mortgages. Another common option to help keep your home is declaring Chapter 13 bankruptcy. This court procedure allows you to immediately halt foreclosure proceedings against your property, and enables the judge to specify new terms for your mortgage. If your lender is not amicably accepting the idea of a modification, bankruptcy (and an experienced bankruptcy lawyer) will force the bank to change its ways.
Foreclosure affects millions of Americans every month. If you are an Illinois resident thinking about declaring bankruptcy in order to keep your home, call the legal team at Dixon & Johnston, P.C. at (618) 233-1103. The first consultation is always free, so contact us today to see if bankruptcy can help your unique financial situation.
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