Foreclosures Up 93% from July 2006 to July 2007

21 Aug Foreclosures Up 93% from July 2006 to July 2007

July foreclosure filings, including default notices, auction sale notices and bank repossessions, rose 93% from July 2006 and were up 9% from June, according to the latest U.S. Foreclosure Market Report from RealtyTrac.

Unfortunately, this may be just the tip of the iceberg. According to Moody’s, mortgage delinquencies are expected to increase over the next year, peaking in the summer of 2008. By this time, 3.6% of all mortgage debt is expected to be delinquent, an increase of 20% from today’s figures. It’s even worse for subprimes. The foreclosure rate for these loans is expected to rise by 250%, from 4% to over 10%.

How can you avoid getting caught in the next wave of foreclosures?

As Jay Fleischman noted in his blog on the same article, loss mitigation is probably the best option for getting some relief. Since refinances are largely unavailable for most people, at least at the current time, there aren’t a whole lot of additional options available. Congress is considering making some changes to the Bankruptcy Code that might make Chapter 13 bankruptcy attractive, but right now it won’t give you relief from an obscene interest rate and lowered property prices.

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Brett Weiss, a senior partner at The Weiss Law Group, LLC, represents people and businesses in all phases of bankruptcy. He has experience in complex individual Chapter 7, Chapter 11, and Chapter 13 bankruptcy cases, and in Chapter 11 small business restructuring and reorganization. Mr. Weiss lectures nationally on bankruptcy issues. He has testified before the Federal Bankruptcy Rules Committee, the Consumer Financial Protection Bureau, and has twice testified before Congress on bankruptcy and credit issues. Brett Weiss is the co-author of Chapter 11 for Individual Debtors, and has written Not Dead Yet: Bankruptcy After BAPCPA, for the Maryland Bar Journal, as well as hundreds of blogs for the Bankruptcy Law Network. With his colleague, Daniel Press, he recorded a 13-hour basic bankruptcy training series, and leads intensive three-day Chapter 11 training boot camps. Mr. Weiss has received international media attention in connection with his work. He was interviewed by Barbara Walters on The View, has appeared on the Today Show, Good Morning America, ABC News with Peter Jennings, the Montel Williams Show, National Public Radio, AARP-TV, the BBC World Service, German state television, and numerous local radio and television programs, and been quoted in Money magazine, The Washington Post and The Baltimore Sun, among others. Brett Weiss is the previous Maryland State Chair for the National Association of Consumer Bankruptcy Attorneys, a founding member of the Bankruptcy Law Network, on the board of the Maryland State Bar Consumer Bankruptcy Council, and a member of the American Bankruptcy Institute and the Bankruptcy Bar Association of Maryland. He has received the Distinguished Service Award from the National Association of Consumer Bankruptcy Attorneys for his work on behalf of consumers across the country. Mr. Weiss is admitted to practice before Maryland and District of Columbia federal and state courts, the United States Courts of Appeals for the DC, Fourth and Eighth Circuits, the United States Tax Court, and the Supreme Court of the United States, and has been practicing law since 1983.
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