Across-the-board problems persist in the housing market according to federal government number crunchers. A report released earlier this week by the U.S. Treasury Department says the number of home foreclosures made history by going over the one million mark for the first quarter ever in the third quarter of 2009. These findings come from a review of “first-lien” or prime mortgages serviced by U.S. national banks and savings and loans. The statistics presented in the report cover approximately 65 percent of all mortgages nationwide or 34 million loans issued by these large banks, to the tune of $6 trillion in principal balance through the end of September 2009. While about 87 percent of these mortgages were current, which sounds good perhaps, it represents about a five percent drop from last year at this time. Even homeowners who got the benefit of a mortgage modification plan that lowered their monthly payments are re-defaulting at high rates–more than half within six months of when their principal and interest payments were reduced.
“Overall, mortgage performance continued to decline as a result of continuing adverse economic conditions, including rising unemployment and loss in home values,” the report says. The report also notes that the “most creditworthy of borrowers” (such as many hardworking, responsible Wisconsin residents) have been increasingly affected by financial difficulties leading to delinquent payments.
While this report isn’t exactly the Christmas present anyone wanted to find under the tree, options exist for those facing possible Wisconsin bank foreclosures. Filing an individual bankruptcy in Wisconsin, if it comes to that, stops all foreclosure activity while you are getting your financial “house” in order. Contact a debt consolidation lawyer about either a Chapter 7 or Chapter 13 bankruptcy in Milwaukee or any other approaches under the bankruptcy laws of Wisconsin for keeping your family under one roof.