Our Riverside County loan modification attorneys keep an eye on the health of the housing market, in California and across the U.S. So we were interested in a somewhat grim set of predictions for housing in 2010 published Jan. 4 by BusinessWeek. The article consults industry experts including economists and a professor for the Mortgage Bankers Association for predictions on foreclosures, recovery signs, federal action and more. While the experts seemed hopeful about signs of recovery, both current and future, they didn't mince words about the problems they anticipate. First and foremost, they said foreclosures would increase in 2010, particularly among prime borrowers.
When the housing crisis began, the bulk of foreclosures were among borrowers who took out costly subprime loans. Now, the article said, the problem has shifted mainly to prime borrowers, who qualified for lower interest rates. Experts said the problem is driven by unemployment, which affects people of all economic classes. Despite a small fall-off, unemployment is still at record highs, at 10% nationally and 12.3% in California. Without income, homeowners may simply not be able to pay what they owe, even if the loan terms were reasonable and appropriate. This will slow the housing recovery that began in September, one expert said -- but it won't stop recovery entirely. Sales have risen in the past three months, and new-home inventories are low.
No one can truly predict the future, but these predictions absolutely fit with our experience as Anaheim loan modification lawyers. More and more, our clients are people who are facing foreclosure because of unemployment, not because they were sold bad loans. People subprime loans and victims of predatory lending are absolutely still out there, but most who were facing foreclosure have already resolved their problems. As some in the federal government are now acknowledging, the problem is that people without an income don't have the money to make their mortgage payments, especially if they bought their homes at the height of the market. Because many are also "underwater," owing more than the home is worth, some feel like the best solution is simply to walk away.
Howard Law LLP offers another solution for homeowners willing to fight. Since the beginning of the housing crisis, we have offered legal representation to homeowners who would like an attorney's help negotiating a loan modification, or addressing gross negligence on the part of a lender that hasn't responded to calls. Many of our clients come to us after weeks or months of trying to change loans on their own, only to be ignored, transferred endlessly between departments or have their paperwork lost repeatedly. Our Diamond Bar loan modification attorneys can often win an immediate change of attitude, because lenders know that we can and will protect our clients' rights. We have been able to win reduced interest rates, changed repayment periods and even some reductions of principal for our clients.
If you're facing default and your lender doesn't seem to be willing to respond to your messages, don't wait to call Howard Law for help. We offer free, confidential case evaluations for all potential clients. To set one up, please contact us through our Web site or call 1-800-872-5925 today.