Home prices fell in February for the eight month in a row, nearly reaching the lowest point during the recession. The 10-city and 20-city indexes by S&P/Case-Shiller both fell 1.1% (not adjusted for seasonality) from the previous month. The 10-city index was down 2.6% and the 20-city index was down 3.3% from February of 2010. Home prices are now only slightly higher than the recession low reached in April of 2009. This can be primarily attributed to the large number of homes on the market, many as the result of foreclosure. The price of homes is expected to continue to fall through much of 2011, though potentially at a slower rate.
The housing market has been a weak point in the recovering economy, in contrast with the increasing job market and lower unemployment rates. Though they originally intended to hold on to their homes until the market recovered, some homeowners are choosing to sell in view of projections that the housing market will continue to decline. Take a married couple in Southern California that purchased a home that is now worth significantly less than the original purchase price. Rather than sell the home at a loss, the couple has decided to rent out the property, at a cost of $6,000 per year in property tax, homeowner's insurance and other expenses not covered by the rental income. They may be forced to negotiate a short sale or deed in lieu to avoid continued losses with no hope of relief.
Experienced legal representation can make all the difference in the face of foreclosure or other issues related to overwhelming debt and bankruptcy. At Jacoby & Jacoby, the knowledgeable legal team is here to offer you dedicated counsel and personalized attention to help you experience much-needed relief and financial security.
Contact a Long Island foreclosure defense lawyer at the firm today to discuss your financial situation and your legal options.