As foreclosure forces millions of homeowners to suddenly become renters, a study from investment bank Morgan Stanley says these borrowers will pay $72.7 billion in incremental rent payments over the next five years as their credit heals. HousingWire reported on October 28, 2011, that there are roughly 7.5 million households either in foreclosure or delinquent on their mortgage. The lead author of the report, Morgan Stanley housing and securitized products analyst Oliver Chang, told HousingWire that he expects a drop in the U.S. homeownership rate to 60 percent in the coming years from 69 percent at its peak. The rate suffered its largest drop in seven decades when the Census Bureau reported this month that the rate tumbled to 65 percent from a decade ago.
HousingWire noted that there have been 8.9 million homes lost to foreclosure since 2007, the height of the credit crisis. However, many families are still in desperate need of foreclosure help . These homeowners most certainly would prefer to continue paying a mortgage rather than rent, which is why a bankruptcy means test could be their best option. A means test can help determine whether Chapter 13 or Chapter 7 bankruptcy will be the better option to help keep these families in their homes. If you are in a similar situation and facing foreclosure, our Chicago bankruptcy lawyers can help. Contact our office to receive a free consultation.
Benjamin Brand Services – Chicago bankruptcy attorneys