We’ve heard debates about Social Security, the 9-9-9 tax plan, closing the borders and job creation.
But what we haven’t heard are any suggestions about how to fix the worst housing crisis in the last eight decades. The field of Republican candidates for president has been debating for months about many issues, but as MSNBC points out, none have offered plans to fix our real estate market.
Foreclosures in Miami have caused a great strain on our economy. Many homeowners have lost their jobs, and their home may be the one stable thing left in their life.
But rather than try to work with homeowners who have made years of payments without fail, Miami foreclosure defense lawyers have seen banks get pretty aggressive with homeowners. They may offer an opportunity to participate in a loan modification program, but then they may say the homeowner is disqualified because they missed payments. Or there may be a clause that disqualifies them from participating because they owe too much.
It seems banks aren’t really trying to help homeowners, they simply want to make money. Oftentimes, that means they prefer to let the house go into foreclosure. Then, they start looking at how much money they can make by auctioning the home. Some go as far as filing for a “default judgment” against the former homeowner, which is the difference between what is owed on the mortgage and what the bank receives at auction for the house. This, too, can be devastating.
Banks have had ample opportunity through federal-backed programs to work with homeowners. Largely, they have done little to help, and now they’re stuck with millions of properties.
MSNBC reports that about 33 percent of U.S. homeowners with mortgages are now “under water,” which means they owe more on the home than its worth. Housing prices have continued falling, so that percentage will likely increase in the coming months. Despite this, there has been little talk about it by the candidates.
Recently released data shows that of the 50 million houses with mortgages in this country, 28 percent of homeowners owed more than what their house is worth, which amounts to nearly 14 million houses nationwide. In Miami, Tampa, Orlando, Detroit, Phoenix and Sacramento, data suggests that nearly 50 percent of mortgages are under water.
Experts believe that the basis of the economic recovery in this country is tied directly to the real estate market. Without people buying and selling homes and banks drumming up business, our economy as a whole will continue to suffer.
Some candidates have said that to do less is more. They believe that allowing the market to hit rock bottom, where investors can get rich off of bottom-barrel prices and get renters into houses is the way to fix the problem. Texas Governor Rick Perry is focusing on job creation, which he believes will fix the issue.
This certainly isn’t encouraging news, especially considering that the Obama Administration has failed to make a large dent in foreclosures and could have been an area to exploit. But it’s clear that there are few answers out there.
The only thing a homeowner dealing with a Miami foreclosure can do is fight back with the help of an experienced Miami lawyer.
If you’re battling foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.
More Blog Entries:
Don’t Get Upset, Get a Good Attorney to Fight a Miami Foreclosure: October 8, 2011
Miami Foreclosure Watch: 11 Million Properties in U.S. Have Negative Equity: September 30, 2011
Candidates on housing crisis: A deafening silence, by John W. Schoen, MSNBC.com