Many Florida residents were able to purchase homes with little money down and low monthly payments. However, as the years went by the terms of the mortgage permitted mortgage companies and banks to raise the interest and monthly payments. These new homeowners hoped to invest in a home at favorable rates and hold it while it appreciated in value. After a few short years, they would make a good profit and sell the home to someone else. These terms came along at the same time as high unemployment and falling home sales. Unfortunately the real estate market in Florida softened and these homeowners weren’t able to sell their homes. Foreclosures Vero beach area increased along with bankruptcy petitions.
Bankruptcy lawyers and real estate brokers became very busy professionals as these real estate investors and homeowners sought to modify the original terms of their mortgages. Some were able to avoid Foreclosures Vero beach region by selling their homes at no profit. Many banks were forced to approve short sales because they didn’t want to hold too many properties in a down real estate market. As the economy and real estate market continued to contract many homeowners couldn’t sell their way out of their problems and had no choice but to declare bankruptcy.
Bankruptcy attorneys helped their clients decide between a Chapter 7 or Chapter 13 bankruptcy filing. Both federal and state law apply and it’s necessary for resident to use an attorney to make sure that they preserve as much of their wealth and equity as possible. In a Chapter 7 bankruptcy plan, most of the property is sold to pay off creditors. A Chapter 13 bankruptcy plan allows a person to keep their property, but requires them to repay creditors over a 3 to 5 year period. They are allowed to cover basic living expenses and all other funds are dedicated to paying off debt.
Many lawyers were able to help their clients avoid losing their homes by showing that the banks and mortgage companies had not followed the proper foreclosure procedures. Mortgages were often sold several times as investment vehicles and those transactions were not properly documented. This helped reduce the number of Foreclosures Vero beach area. The real estate market has started to come back. Now, these homeowners that have staved off bankruptcy and foreclosure can try to sell their property again.
