Financial difficulties can strike anyone at any time. Whether they are the result of an extended illness or a period of unemployment, financial troubles can have far-reaching consequences. Many people’s most valuable assets are their homes, and protecting their homes from foreclosure is critical in ensuring their security while they are rebuilding their finances.
Local news reports that as the nation’s housing market continues to improve, Long Island homes are still losing value, with July sales prices falling just under 1 percent from last year. For homeowners, this means lost equity and difficulty making sales. Those who are currently experiencing financial woes may be unable to sell their homes for the amount they currently owe, compounding their money troubles.
The continued housing decline is attributed to a greater rise in Long Island home values during the real estate bubble, which is leading to a prolonged recovery period. Homes that have lost significant value often wait on the market without an offer, and when they do sell, they frequently sell for far less than the home’s original purchase price. In many situations, remaining in the home is a more viable solution than selling the home at a substantial loss, and homeowners should investigate their options.
Homeowners who are behind on their mortgage payments may be able to save their homes from foreclosure by filing for Chapter 13 bankruptcy, provided they are able to continue making payments on the house. Legal consultation can be beneficial in identifying the available options and moving forward with a plan to prevent foreclosure.
Source: Newsday, “LI home prices slip despite strong national market,” Maura McDermott, Sept. 4, 2012