When the recent recession hit the United States, many homeowners faced the prospect of their homes being foreclosed upon by their mortgage lenders. After the real estate market fell apart in 2008, millions of homeowners faced foreclosure. The Florida real estate market was especially affected and still currently accounts for approximately a quarter of the home foreclosures in the nation. However, the governor has recently approved of a plan to help homeowners in avoiding home foreclosure.
When an individual in Florida encounters difficulty in making his or her mortgage payments, the response is often to seek assistance from the lender. In many cases, loan modification programs can help struggling homeowners to regain their financial footing and save their homes from foreclosure. Many borrowers rely on these programs to assist them when they encounter financial difficulties, but in some cases, the safety net they had hoped for simply does not exist.
In a recent post and many times in the past we have discussed the problem of student debt and the way that it impacts other types of borrowing and debt. When recent graduates emerge from college, an associate's degree program, or graduate school with high amounts of debt, it is essential that they find work in order to start paying down that debt on time. Unfortunately, the lagging economy is making it more difficult for graduates to find jobs that make their investment in higher education profitable from the start.
A recent lawsuit alleges that a company called the National Mortgage Help Center is s scam. The lawsuit was filed by a company that says it actually assists borrowers around the country with loan modification services, but that they were suffering from unfair competition from the "fictitious" services of the NMHC.
The state of Florida has the highest number of houses that are vacant while they are in some stage of repossession, according to a recent analysis by RealtyTrac. These vacant houses, known as "zombie" foreclosures, are troublesome to the local housing market since they are not marketable yet and also not being cared for. The total number of zombie foreclosures in Florida was 90,556 during the first quarter of 2013.
A new start-up is offering an alternative to student loans that works more like a crowdfunding investment model and less like a traditional loan. The company is called Pave, and it matches students with investors who will pay a portion of their tuition in exchange for a percentage of their earnings after graduation.
A new set of regulations finalized by the Consumer Financial Protection Bureau will require mortgage servicing companies to treat borrowers more fairly.
The Florida legislature is in the process of deciding how to divide up the $60 million in aid it will provide for troubled homeowners. Most of the money will go towards assisting homeowners having problems making down payments on their loans.
Bankruptcy filings in the Orlando area have decreased for a second year in a row, leading to the lowest number of filings since 2008. Through November 2012, there were 16,640 bankruptcy cases that had been filed in the metro area. That is a 9.3 percent decrease compared with the same period of time last year.
The total percentage of household income being spent on debt payments has gone down in 2012, according to data released recently by the Federal Reserve. On average, households in the United States are spending just under 11 percent of their after-tax income making payments on their debt, which is the lowest rate since 1983.