Some economists believe that this year may be the year that the housing market starts to make a comeback. Several states have started to report their foreclosure rates to be dropping significantly, California being one of them.
The Los Angeles Times reported in a January 23, 2013 news article that their state has had a huge drop in their foreclosure rates. Their rates are now lower than they have been in the last six years. This decline includes in foreclosures a decline in the number of homes that are repossessed. This may reflect that the market will begin having higher home prices and result in a healthier market.
One economist stated that the number of foreclosures shows where the market is in the recovery process; therefore, the fewer the foreclosure rate the more rapid the recovery. The housing market originally hit its lowest point back in 2007 when the market basically collapsed after banks were found to have approved mortgages without supporting documentation.
The market saw a small wave of improvements in 2009 but people analysts were fearful of a second wave of defaults. Now four years later it seems that the banks have turned around their practices to help prevent the market failing at that extreme level again.Â With the housing market improving it could mean that economy will also see steady improvements. Rising housing prices means that people are making higher incomes to support the amount.Â Although the filing of new foreclosures is on the decline, the number of people still dealing with a current foreclosure is high.
If you are considering bankruptcy or are facing foreclosure, you should speak to a qualified attorney. Mr. Lutzky of Jayson Lutzky, P.C. has been helped many clients in bankruptcy matters over the past 29 years. Call his office to set up a free consultation at (800) 660-5299 or visit www.MyNewYorkCityLawyer.com for more information.