Home Prices Down Again
By Kurt O'Keefe, Attorney at Law on Sep 25, 2007 in General Bankruptcy Information
Another home price index shows the continuing decline in real estate values.
The snowball continues, as more ARMs reset, causing more foreclosures, more supply of houses for sale, further depressing prices.
Mortgage companies are trumpeting that they are more willing to avail themselves of their “loss mitigation” departments to avoid foreclosures, and this is probably true.
It is not uncommon to find people (and some of them are my clients) who do not realize they are in an adjustable rate mortgage until the payment goes up.
Not knowing your financial situation can only hurt you. It is your house and your mortgage.
Do not let things pile up until bankruptcy is your only alternative, or until it is too late to file Chapter 13 bankruptcy to stop a foreclosure sale.
Do not get hung up on believing your house must be worth at least what you paid for it, even three or two or one year ago.
Get the real facts of your home and mortgage situation, have a realtor give you an estimate of what it would sell for, in today’s lousy market.
Make sure you understand ALL the terms of your mortgage.
If you find out that payment is bumping up to a level you cannot afford, contact the mortgage company, the sooner the better, to see if they will change the terms.
And consult a consumer lawyer before you sign a deal with them, or anyone.
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