Since 2008, over five million property owners in the United States have lost ownership of their homes due to the foreclosure crisis. Now, seven years after the initial burst of the housing bubble, many Americans believe that the crisis is over considering foreclosure rates have significantly dropped since 2014.1 However, in 2015, many homeowners are once again facing the threat of foreclosure, leaving many people wondering if the U.S. is experiencing a resurgence of the housing crisis.
The following are only some of the reasons why foreclosures are once again on the rise in the U.S.:
- Many homeowners agreed to loan modifications through the Home Affordable Modification Program (HAMP)2 or through their lenders that were only temporary and their mortgage payments are now substantially increasing as the modification expires.
- Homeowners with interest-only home equity lines are having their credit line reset, requiring them to pay on the principal balance and also often preventing them from borrowing against the line anymore, causing higher risk for default.
- Homeowners who underwent a foreclosure or bankruptcy in 2008 are becoming credit-worthy again and may be taking out new mortgages or credit lines that they will not be able to pay.
It is important to address the new potential wave of foreclosures in a different manner than occurred in 2008 so we may be able to avoid yet another resurgence after the next seven years have passed.
An experienced Seattle mortgage attorney can assist with your case
If you are once again on the brink of foreclosure due to a past loan modification, an expired home equity line, of for any other reason, the qualified Seattle mortgage attorneys at the Dickson Frohlich Phillips Burgess are here to help. We work with homeowners and the mortgage companies to try to find effective solutions to keep you in your home that are long-term. Without an experienced attorney on your side, it is easy to fall for a mortgage solution that is too good to be true. Instead, call us today at 253-572-1000 for a free case evaluation.