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Foreclosure and Unemployment

Recent news reports have indicated that it will take approximately 24 months for the New York City and Long Island area to recover from the current high levels of unemployment. It is estimated that the metropolitan New York are will not return to it’s pre – recession levels of employment until April of 2013. Metropolitan New York is doing better at recovering from the recession then other parts of the country. It is estimated that the majority of the country will take 3 years to reduce the unemployment rates to pre – recession levels.

New York Real Estate

Although property values have not recovered from the real estate crisis, in the State of New York, real estate experts are proclaiming that we are doing better than California, Arizona and the majority of the sun belt. Although the pundits are claiming things will get better, I don’t see this happening. Foreclosure rates in the Metropolitan New York area continue to climb. Banks are refusing to provide feasible mortgage modifications to homeowners. Unemployment rates are remaining steady or climbing. The business areas in local communities have been devastated. There are empty stores everywhere.

2012 is an election year. President Obama is going to have to take further action to simulate our economy and revitalize our housing markets if he wants to get re – elected.

Litigating Foreclosures In New York State Courts and In Federal Courts

There are two different routes to dealing with homes that are in foreclosure. The cases can be defended in the New York State Courts. Defective mortgages, defective foreclosure lawsuits, predatory lending and other real estate related defenses can be submitted in a response to the service of the summons and complaint in a foreclosure proceeding. Mortgage modification applications can also be submitted to the financial institutions.

Filing Bankruptcy to Stop Foreclosure

The second route is filing foreclosure related bankruptcies. Both Chapter 7 and Chapter 13 bankruptcies will stop foreclosures from moving forward. The filing of bankruptcies will also eliminate unsecured debts, stop debt collection, harassment and in some cases, eliminate second mortgage liens. Call us for a consultation and we will discuss why filing bankruptcy may be in your interest, the types of bankruptcy available to you and how to re-establish credit after filing bankruptcy.

Foreclosures Increase Economic Stress in the United States

In December of 2010, the economic stress in the United States increased. This was largely due to the depressed housing market. Foreclosure rates rose in thirty-three states during December. In addition, bankruptcy levels remained very high.

Social Security Rates Go Down

During the 2011 calendar year, the tax rate for social security taxes was reduced. This results in workers’ paychecks going up.

Manufacturers Are Adding Jobs

In the United States, manufacturers, after many years of having shrinking payrolls, plan on hiring more employees in the year 2011. In January of 2011, the manufacturing sector of the United States economy added approximately 50,000 jobs. This was the largest increase since August of 1998.

Unemployment Rates Go Down

The unemployment rates have been slowly decreasing in the United States for the past two months. The unemployment rate was 9.8% in November of 2010 and fell to 9% in January of 2011.

Bankruptcies and Foreclosures Increase

Rajeev Dahawan, an economist at Georgia State University, stated, “bankruptcies and foreclosures are the side effects of the damage from the real estate bust. First you have the real estate problem and then it spills over into bankruptcies and foreclosures.”

Bankruptcy

Bankruptcies generally increase during times of economic stress. In November of 2005, the Bankruptcy Reform Act led to more stringent standards for filing a bankruptcy. A “means test” was a mandatory part of the Bankruptcy Reform Act. Since November of 2005, the rules regarding filing Chapter 7 bankruptcies have been liberalized; however, the means test standard still applies on all new Chapter 7 bankruptcy filings.

Bankruptcy Lawyer

Our law office files Chapter 7 and Chapter 13 bankruptcies on behalf of our clients. These bankruptcies will stop foreclosures from moving forward and, in some circumstances, eliminate second mortgages. In addition to filing bankruptcies, we educate our clients on how to re-establish credit after bankruptcies are filed.

Our law office provides comprehensive foreclosure defense legal services. We assist our clients in applying for mortgage modifications and deal with mortgage modification programs that fail to meet our clients’ needs. We litigate defective mortgages, predatory lending, defective foreclosure lawsuits, bad faith on behalf of financial institutions and all other real estate related matters. During the course of foreclosure litigation, we attend foreclosure court conferences on behalf of our clients and try to motivate the financial institutions to give our clients mortgage loan modifications. Feel free to call us at 1-800-344-6431, 516-561-6645 or 718-350-2802 to discuss your legal needs. Thank you for reading our foreclosure blog.

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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