Bankruptcy

More Foreclosure News

By Richard K. Gustafson

Foreclosure filings across the United States rose 47% in April compared to the year before. The rate is up to 1 out of every 775 households. The housing boom of the 1990’s and early 2000’s caused many people to speculate in the housing market. They would purchase and try to “flip” properties almost as if they were sitting at the craps table in Vegas. People would buy houses they never intended to occupy simply to ride the market. Unfortunately, the speculation has exacerbated the housing downturn.

The downturn coming on the heels of rampant speculation has seen more and more houses available on the market now. This has increased the market listing times and forced sellers to reduce prices. Builders have been slashing new construction prices, thereby making it more difficult to sell existing homes. These “flippers” never anticipated having to meet mortgage payments for as long a time period and more and more houses are now going into foreclosure.

Full post as published by Consumer Bankruptcy Blog from Legal Helpers on June 01, 2007 (boomark / email).