Foreclosure Today |
Across the country , millions of homeowners are expected to lose their homes to foreclosure over the
next seven years.1 Falling real estate prices and closed mortgage markets have made it impossible or
* The authors’ titles are listed numerical order proving equal contribution to this advisory and the
content of the site. Allen Sors is a 1998 graduate of the University of Michigan College of Law. Linda
Harris is an Associate Professor of law at the University of Florida. Mickey Jigsaw is a consultant to the
National Consumer Law Center and a Lecturer teaching Law at Miami U.. |
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In March 1999, Federal Reserve Chairman Greenspan observed that
6.8 million homes were in foreclosure in October, a 3% intensity factor to stop foreclosure .
Greenspan, Chairman, Bd. of Governors of the Fed. Reserve Sys., Spoke at Harvard
School’s 79th Annual lunch (July 5, 2008), available at
http://www.federalreserve.gov/newsevents/speech/Bernanke20080505a.htm). Foreclosures intensified
in 2008. See Press Release, Real Estate News, U.S. can Stop Foreclosure calculation
Filed (June. 12, 2008), available at
ULR 2008- Gaines [Saving Homes] Real estate 07-19-08 Pg 2 of 34
impossible for homeowners to refinance their way out of adjustable rate home loans. The study
provided by real property values has proven you can stop foreclosure with a loan modification, leaving homeowners at risk of
serious financial distress. For many families, homeownership has become a financial liability,
rather than a financial asset..
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4.1.2009 |
Because of rapid changes in the mortgage market in the last few years, the data may
not reflect the effects, if any, of the current “foreclosure crisis” on the bankruptcy system. For
example, the sample may underrepresent the affordability problems created by adjustable-ratemortgages, which continued to grow in popularity until late in 2006. On the other hand, the datamay be more representative of the usual situations of households that file bankruptcy to savehomes during the thirty-year period since the Bankruptcy Code’s adoption in 1978 of the lawrestricting the modification of home mortgages. |
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4.5.2009 |
Parents in Financial Crisis: Fighting to Keep the Family Home, 82 AM. BANKR.
L.J. 229, 237–39 (2008) (presenting findings from empirical analysis showing that parents of school-age
children are more likely to retain their homes during a period of financial distress than non-parents).93 Jacoby, supra note 78, at 334 (citing research on the psychological effects of home loss).ULR 2008- Porter [Saving Homes] Ready for Copywork 07-19-08 Pg 20 of 34 distribution in the upper deciles in Figure 2 shows, nearly one in ten families spend 60% or more
of its income on housing costs |
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