Foreclosures Fall! Great News? Maybe Not…

11 Oct Foreclosures Fall! Great News? Maybe Not…

According to a recent article on CNN-Money, foreclosure delinquencies and defaults actually fell 8 percent in September 2007. Great news, right? Things are finally getting better, right?

Well, not really.

Although foreclosure delinquencies and defaults dropped 8% from August–to “only” 223,538–they were still the second highest number ever recorded, and more than double the rate for September 2006. Only August 2007’s number was higher.

But this could be the start of a downward trend? Well, probably not.

Coming up on the horizon are all of the 2/28 and other “exploding ARM” mortgages that folks signed up for in late 2005 and all of 2006, when closings on refinances and sales were still running at record rates. As noted in my blog, “Foreclosures Up 93% from July 2006 to July 2007,” foreclosure rates on subprime mortgages are expected to jump by 250% before the summer of 2008. And Reuters reported that Countrywide, the country’s largest mortgage lender, said its foreclosures more than doubled in September, and it was planning to cut 20,000 jobs before Christmas–nearly 20% of its workforce.

So it looks as if there’s going to be a lot more bad news before things get better.

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Brett Weiss, a senior partner at Chung & Press, 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 law partner, 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 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, the Bankruptcy Bar Association of Maryland, and the Civil Justice Network. He has been recognized as a “Super Lawyer” every year since 2007 for Maryland and the District of Columbia, and in 2011 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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