The current housing crisis has caused many people to lose their homes or owe more than their houses are worth. A Case-Schiller, which provides data to the housing market, reported that home values have dropped 33 percent since the crisis began. During the Great Depression home values dropped 31 percent.
There are a number of factor that have contributed to the decline in property values, but the largest problem is the number of foreclosed homes in the real-estate market. Currently, there are at least 4.5 million homes more than three mortgage payments behind or in the foreclosure process. Historically, the average of troubled homeowners is 1 million. Some of these individuals will need to employ a foreclosure attorney to keep them in their homes.
Wrongful practices and subprime loans are also blamed for the drastic increase in the number of people facing foreclosure. Because banks used a “robo”-signing practices, many homes have been wrongfully thrown into foreclosure. Contesting a foreclosure is possible by hiring a foreclosure lawyer.
There are a number of reasons a person falls behind in their mortgage payments such as unemployment or having a subprime loan. Subprime loans often cause a person’s mortgage to increase hundreds of dollars a month, and were often issued to borrowers that posed a risk. Holders of subprime loans can find it impossible to make their mortgage payments. If other methods like mortgage modification have failed, a foreclosure attorney can fight to keep a person in their home
