According to CNNMoney and current economists, the housing market is likely to continue falling throughout 2011 and into next year as well. In an exclusive survey performed by CNNMoney, 27 economists report that the housing market is having a variety of problems that cannot be solved anytime soon.
According to Case-Shiller home price index, the median forecast was for a 3.9% decline in the second quarter compared to a year earlier, and a 2.9% drop in prices over the course of the full year. Next year the forecast improves only slightly with an estimated 2% increase in home values. Some economists, however, predict home prices will continue to decline next year.
What are the primary issues? Most economists claim we will not see much improvement in the housing market until the labor market improves. Others believe that it will take time for the market to “work through” the inventory of foreclosed homes. Other economists claim that the market has not reached its true bottom, and homebuyers are reluctant to enter the market and buy a home that may continue to depreciate.
Home prices have taken a beating in the last few years. If you have bought a home, expecting it to appreciate, you may be surprised that its value continues to decline. If you have lost your job or have suffered a major financial crisis, you may be facing home foreclosure.
What are your financial options? With the poor housing market, many homeowners who need to sell their home are unable to without taking a substantial loss. If you are facing home foreclosure you may be able to file for bankruptcy to protect your home.
Filing for Bankruptcy
Filing bankruptcy is a serious financial decision which should not be made without first talking to a bankruptcy lawyer and making sure it is the best decision for you. There are also long-term financial impacts for bankruptcy which should be reviewed.
If you decide bankruptcy is the right choice you need to talk to a bankruptcy lawyer to find out if you can file either Chapter 7 or Chapter 13 Bankruptcy. Stricter bankruptcy laws have made it more difficult for many filers to discharge most of their debts with Chapter 7 Bankruptcy.
If you do not qualify for Chapter 7 Bankruptcy you may be able to file Chapter 13 Bankruptcy and create a three to five year debt repayment plan to repay your creditors.
Filing bankruptcy will also stop home foreclosure, property repossession, wage garnishments, bank account levies and creditor harassment. After the filing of the bankruptcy petition is filed an automatic stay will be initiated to stop these actions.
A trustee will also be appointed to liquidate and sell the debtor’s assets (Chapter 7 Bankruptcy) or to gather debt payments and distribute them to creditors (Chapter 13 Bankruptcy). Regardless of the type of bankruptcy, creditors must deal exclusively with the bankruptcy trustee and not contact the debtor.
Contact a bankruptcy lawyer if you have questions about whether filing bankruptcy is right for you. Bankruptcy will not be the best solution for all debtors. Many debtors may be able to create a budget or use debt consolidation to pay their creditors and avoid bankruptcy.
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