High Unemployment Continues to Plague the Housing Recovery

unemployment.jpgA recent survey shows that Americans have a negative attitude towards the housing market recovery. More than half of Americans surveyed last month said they don’t believe a recovery will occur until at least 2013. Reports about robo-signers abusing the foreclosure process has contributed to this attitude. Another survey shows that about 70 percent of renters would wait at least two years before they would buy a property.

The current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. There are many factors contributing to Florida’s nation leading delinquency rates. They include a weak job market, weak economic recovery, and a major drop in home prices. Consequently, Florida’s housing market remains unsettled in large part due to the continued foreclosure crises. Our Miami foreclosure defense lawyers have assisted many homeowners in buying enough time to reach the solution that is right for them. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it.

The underlying problem with today’s housing market is the continued high number of inviduals that remain unemployed. If unemployment rates stay high – like those we see in South Florida – then the housing market cannot recover. While the housing market is taking small steps toward a recovery, it will not fully rebound until unemployment is lowered.

Even those who are employed now are not buying homes. This is probably due to the fear of taking on the risk of a long-term financial commitment in a climate where people feel they could be next to lose their jobs.

A survey also demonstrated that more Americans are willing to walk away from their homes if they owe more on their homes than what it is worth. This typically referred to as a strategic default. Compared to 41 percent in May, 48 percent of homeowners with a mortgage would consider a strategic default today.
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We have been successful in defending many foreclosure cases when given an opportunity to develop a plan to properly defend the foreclosure.

If you are on the brink of foreclosure, need a real estate attorney, or just need to assess your legal rights, please contact our office today.

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