A report released Thursday by RealtyTrac showed that
foreclosure rates in 2011 dropped to their lowest level since 2007 when the
Great Recession began. In 2011 foreclosures dropped 34 percent below 2007
levels.
In 2011, 1.9 million homes entered the foreclosure process,
but RealtyTrac warns that more homes will enter the process in 2012.The firm
anticipates that the rate will rise in 2012 as lenders begin processing delayed
foreclosures.
Mortgage lenders slowed foreclosures amid a paper work
processing scandal. Many homeowners faced losing their homes because of
fraudulent documents, many of which hired foreclosure attorneys to challenge inconsistencies. These lenders were forced to change
the way they processed these documents, which curtailed default proceedings
throughout 2011.
Now that they have cleared these issues up millions of
foreclosures will hit in 2012.
The federal government has pushed lenders to offer mortgage
modifications for troubled homeowners. The government gives incentives to
lenders if they offer modifications, but numerous banks have been cited for
their lackluster participation. A foreclosure lawyer can help with this complex process.
Despite the lower foreclosure rates of 2011, unemployment
and an ailing economy are still weighing on the housing market. Foreclosures
are driving down housing prices and some people stop paying their mortgages
because they owe more than the house is worth. A foreclosure attorney can offer help and relief to troubled
homeowners and make it possible for them to stay in their houses.
