After Hurricane Sandy struck the northeast, many families have been faced with a tough road to recovery. As a result of the damage left behind many people’s rebuilding efforts are also being met with foreclosure troubles. Now faced with additional challenges, many are turning to bankruptcy for help with fighting foreclosure and getting back to solid financial ground.
Housing Market Hurdles
Unfortunately, the housing market recovery has been slowed in the wake of Hurricane Sandy. Despite a drop in foreclosure filings by nearly 19% in October, the number of initiations still increased. In other words, fewer foreclosure cases have been completed, but many more are underway as we speak. However, more foreclosure initiations doesn’t necessarily mean more will be completed.
Why? One, many of these initiations are being seen in judicial foreclosure states, who can average upwards of 300 or more days to complete. Two, options like Chapter 13 bankruptcy can halt and resolve a foreclosure before it completes.
It is expected that many of the northeastern states will be seeing an increase in Chapter 13 filings in the coming months. As more families will be looking for ways to keep their homes, a court-supervised repayment plan can provide for immediate relief by keeping already displaced families in their homes, as they return to rebuild.
Anyone looking for help with foreclosures should consult a Tampa bankruptcy lawyer. Having an experienced attorney review their options for keeping their home can ensure that one’s greatest asset is protected properly.