During the last three months of 2010, home values nationwide went down 2.6%. As home values have gone down, foreclosures have increased. The more homes foreclosed and brought onto the market, the greater the over-supply of inventory. In a supply and demand based market place, the greater the supply without a corresponding increase of demand will lead to a continual reduction in the value of homes in the United States.
Phoenix, Arizona: a Hot Spot of Foreclosures
It is estimated that as much as 70% of all of the homes in the Metropolitan Phoenix area are under water (worth less than the amount of mortgages attached to these homes). Las Vegas, Nevada, is also in a similar situation. Recent studies have shown it is less expensive in Las Vegas to buy than to rent a home.
Thirty Percent of the Homes in America are Underwater
Recent studies have shown that approximately one out of every four Americans has no equity in their home. This is an extremely sad state of affairs considering the ownership of a single family home in the past represented the greatest single asset for most American families.
Selling Homes For a Loss
The real estate website Zillow.com recently wrote that in December of 2010, more than 33.3% of all homes sold in the United States were sold at a loss!
There was a period of home stagnation due to the disclosure of “Robo Signing”, which was the name given to faulty bank procedures that rushed into foreclosing homes without the proper paperwork by the banks, and the execution of legal documents by bank officials without reading and examining them as to the truthfulness of their contents. In the fall of 2010, thousands of foreclosures were put on hold for the banks to investigate these problems and correct these deficiencies. Many of the banks have now dealt with these issues and thousands of homes that had their foreclosure stopped are now being aggressively pursued by the financial institutions.
Foreclosed homes are expected to flood the real estate market during the first half of 2011. This will lead to further reductions in home values in localities that are subject to high foreclosure rates. It is expected to be a buyer’s real estate market for the next several years!
Defense of Foreclosure Lawsuits
Law Offices of Schlissel DeCorpo defends foreclosure lawsuits. We aggressively litigate these matters and we appear in court for foreclosure court conferences on behalf of our clients. We submit numerous counterclaims and affirmative defenses to delay and possibly defeat foreclosure lawsuits. We deal with failed mortgage modification programs , defective foreclosure lawsuits, predatory lending issues and financial institutions inability to produce the necessary documents regarding their claims. Our law office has been handling real estate matters for more than three decades. Feel free to review our foreclosure blog, which is updated several times a week. Contact us for a consultation at 1-800-344-6431, 516-561-6645 or 718-350-2802.
