• Foreclosure Victims Will Pay More Than $72 Billion in Rent

    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

  • As Foreclosures Take More Time To Complete, Is Time Running Out For Those Needing Help?

    The good news from Chicago nonprofit research and policy organization the Woodstock Institute is that the 3,604 properties that completed the foreclosure process in the six counties of the Chicago region for the second quarter of 2011 was a 27 percent decline from the first quarter and the fewest auctions in any period since the housing crisis began in 2007. However, Medill Reports also pointed out on October 25, 2011, that the average number of days spent in the foreclosure process increased to 359 days in the second quarter, a 25.5 percent increase from the same period in 2010 and the highest since 2008.

    The 8,515 foreclosure auctions in the first half of 2011 represents a 51 percent decline from the 17,331 during the first half of 2010, but Woodstock senior research and project associate Sarah Duda told Medill that a prolonged foreclosure process cuts both ways. “It means that vacant homes in foreclosure have more time to become blighted and destabilize neighborhoods,” Duda told Medill. “If a family is still in the home, however, the longer process could give them more time to negotiate a solution with their loan servicer.”

    Those seeking foreclosure help had a little more time to work with when “robo-signing” caused mortgage servicers to halt foreclosure filings. As Chicago aldermen explore the possibility of a separate court process for foreclosed properties to help cut into the backlog, it would be the families hoping to save their homes who might suffer.

    Are you facing foreclosure and searching for a way to keep your house? If you are struggling through hard times because of job loss, credit card debt or a mountain of medical bills, your first step toward financial recovery could be a bankruptcy means test . A Chapter 13 or Chapter 7 bankruptcy can help discharge your unsecured debt and either discharge or reorganize your secured debt. Our Chicago bankruptcy lawyers can help outline your options in dealing with a foreclosure. Contact our office today to set up a consultation.

    Benjamin Brand Services – Chicago bankruptcy attorneys

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