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Underwater Mortgages Keep Rising

The high level of unemployment in the United States, coupled with the increasing foreclosure rate, is leading to a reduction in the value of homes. The percentage of Americans who owe more on their mortgages than the value of their homes continues to rise. This is causing more and more homes to be underwater. “Underwater” refers to a home having a greater mortgage indebtedness on it then its actual value.

There are 11 million families, which represent 23% of all foreclosures in the United States, that have mortgages that were underwater during the last quarter of 2010. That was an increase from the previous quarter, in which 22.5% of the homes in foreclosure in the United States were underwater. This is the third quarter in a row where the number of homes underwater have increased.

Underwater Mortgages Leave Homeowners with Few Options

When the mortgage on a home is underwater, a homeowner has few options. The homeowner won’t be able to qualify for mortgage refinancing. They simply must continue making the payments on their property and hope that it will eventually start appreciating in value and be worth more than the indebtedness on it.

Experts expect that home prices will continue to fall throughout the 2011 calendar year. The greater the percentage of homes in a given area that are underwater, the more significant impact they have on the valuation of homes in general for that area. As homes in a locality fall into the category of being underwater, they tend to bring down the values of the neighboring homes too.

Purchasing a Home in Today’s Market

To obtain a conventional mortgage, most financial institutions require the perspective homeowner to put down 20% of the purchase price of the home. In today’s economic situation in the United States, with falling salaries, high unemployment and high foreclosure rates, few perspective homeowners fall into this category. The down payment requirements for prospective new home buyers is having a negative effect on the housing market. President Obama’s administration seeks to have all perspective homeowners provide a minimum of a 10% down payment before they can obtain a conventional mortgage that is guaranteed by either Fannie Mae or Freddie Mac.

The amount of negative equity in the United States in the last quarter of 2010 increased from $744 billion nationwide to $751 billion nationwide. This is a major step in the wrong direction! Families, at one time, measured their wealth by the equity in their home. Today, home ownership means you have an asset that is decreasing in value!

Foreclosure Defense Attorneys on Long Island

The Law Offices of Schlissel DeCorpo handles foreclosure defense litigation. We submit detailed answers to summonses and complaints filed by financial institutions. We litigate defective foreclosure lawsuits, predatory lending, defective mortgages and bad faith by financial institutions. Our office in experienced in handling real estate litigation. If a case is in litigation, our attorneys will attend foreclosure court conferences on behalf of our clients. We also maintain a foreclosure blog that contains articles concerning foreclosures, mortgage modification issues and other issues effecting homeowners. We also file Chapter 7 and Chapter 13 bankruptcies which stop foreclosures and can have an impact on eliminating second mortgages. We can also assist our clients in re- establishing credit.

Feel free to call us if you are having difficulties with your financial institution, paying your mortgage or in dealing with a foreclosure issue.

President Obama will not be Successful in Slashing Mortgage Deductions for the Wealthy

Mortgage Deductions For The WealthyPresident Obama wants to limit two popular mortgage deductions utilized by wealthy taxpayers. Unfortunately, the President is meeting a tremendous amount of difficulty from entrenched special interest groups. President Obama has proposed that there be a curtailment of tax deductions for mortgage interest payments and charitable contributions from high-income earners.

President Obama’s proposal is that taxpayers in the 33% and 35% tax brackets will only be allowed to deduct their contributions and mortgage interest payments at a rate of 28%. This would affect taxpayers with incomes of $250,000 and up. It is estimated that this would bring in $321 billion dollars into the federal treasury over a period of ten years. This is not the first time reducing tax deductions for mortgage interest has been proposed. In the past, these proposals have been unsuccessful because of resistance from special interest groups.

Intense Lobbying by the Real Estate Industry

Real estate industry groups, as well as not-for-profit lobbying groups, are lobbying heavily in both the Senate and the House of Representatives against limiting tax deductions for mortgage payments and charitable contributions.

The National Association of Home Builders, through its chief executive Jeffrey Howard, has issued a statement that “this is an attack on the middle class.” Where the housing industry is concerned, capping deductions will have a further negative effect on the housing market. These tax deductions are an incentive for home ownership.

Tom Delaney, the head of the National Council of Non-profits, a network of charity organizations, stated, “we look for every opportunity to help policy makers understand the consequences of different proposals.” The National Council of Non-profits are against limiting these tax deductions. Their position is that limiting the charitable deductions will curtail donations to charities by large donors.

The fifty-four most generous donors in America in the year 2010 gave $3.3 billion dollars to charities. Charities are reliant on donations from wealthy individuals. Charities throughout the country strongly oppose any changes regarding mortgage deductions for individuals who make over $250,000 a year. Individual families in New York State that earn more than $250,000 a year are not wealthy. They are middle class!

Foreclosure Defense In New York

The Law Offices of Schlissel DeCorpo assists it’s clients in applying for mortgage modifications. In situations where the mortgage modifications program fail to approve clients applications, the law office represents them in foreclosure proceedings. Our attorneys attend foreclosure court conferences on behalf of our clients. They defend clients from defective foreclosure lawsuits, predatory lending issues, bad faith on behalf of financial institutions and all aspects of real estate litigation. Call for a free consultation at 516- 561-6645, 1-800-344-6431 or 718-350-2802.

Foreclosures Represent 12.5% of all Real Estate Sales on Long Island

Real Estate Sales On Long IslandIn 2009, there were 2,836 foreclosure sales of homes on Long Island. This represented 10.7% of all sales of single-family homes on Long Island. In 2010, there were 2,571 homes sold related to foreclosure proceedings on Long Island. Even though the number of homes sold in foreclosure was less in 2010 than the prior year, the percentage of real estate transactions on Long Island related to foreclosure sales grew in 2010.

Foreclosure Home Sales Dominate the Real Estate Market in the U.S.

In 2010, 25% of all home sales throughout the United States were the result of foreclosure proceedings. It is anticipated that the percentage of home sales related to foreclosure proceedings will increase in the year 2011. It is expected that foreclosure sales will increase in 2011 because lenders are getting their act together with regard to providing their attorneys with the appropriate paper work to facilitate foreclosure proceedings through the courts.

John Fitzgerald, a real estate broker in Hauppauge, New York, whose business focuses on foreclosure transactions, stated that he has been told by lenders in New York to “get ready because there are properties coming” with regard to increased foreclosure activity on Long Island.

Foreclosure Defense on Long Island and the Five Boroughs of NYC

Should you find your house in foreclosure, we can help you. We’ll assist you in obtaining a mortgage modification. If you don’t qualify for a mortgage modification and you are sued in a foreclosure proceeding, we can represent you in court.

We will see to it that your rights are protected. We are experienced in dealing with mortgage modification programs that fail to provide the homeowner with the promised relief. We maintain a foreclosure blog to educate our clients and the general public with regard to the foreclosure crisis in the United States.

When foreclosure ensues, we attend foreclosure court conferences on behalf of our clients. We litigate defective foreclosure lawsuits, predatory lending issues, bad faith on behalf of financial institutions and defective mortgages.

Our law office has been handling real estate litigation for more than three decades. Should a Chapter 7 or Chapter 13 bankruptcy be appropriate to deal with your financial situation, we will discuss this issue with you and assist you in filing bankruptcy, if necessary. The filing of bankruptcy will stop foreclosure proceedings from moving forward and in some situations eliminate the security interest created by second mortgages. We can also assist you in reestablishing your credit after you have been discharged in bankruptcy.

Feel free to call us at your earliest convenience at 516-561-6645, 718-350-2802 or 1-800-344-6431. Our phones are monitored 24/7.

Foreclosure Defense in Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick and Bellmore, New York

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We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

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