New Study Predicting Continued Economic Troubles Means More Aggressive Approach to Foreclosures by Banks
Recent news of a study claiming the current U.S. housing collapse is worse than during the Great Depression and will continue to fall for the rest of the year means greater emphasis by banks on foreclosures and increased need for homeowners facing foreclosure to protect themselves when dealing with the banks, according to Vito Torchia, Jr. managing attorney of Brookstone Law.
“Banks are more likely now to place a premium on reducing inventory and liabilities so will be more aggressive about foreclosures and fewer consumers will be able to keep their homes,” said Vito Torchia, Jr. “It is already nearly impossible for a homeowner without expert legal help to stop foreclosures, so Banks being even more difficult will be a nightmare for consumers.”
To deal with the needs of homeowners facing foreclosure and help them deal with an institutional bureaucracy that is biased against them, Brookstone Law has created the Emergency Extension Department (EED), a unique service not offered by any other firm that gives homeowners facing foreclosure a fighting chance to keep their homes. The service is offered with no advance fees and consumers pay only if the sale can be stopped. Brookstone Law’s EED attorneys and specialists are experienced in working directly with banks and extensively trained to help homeowners.
According to the study by senior U.S. economist for Capital Economics Paul Dales home prices will fall another 3 percent over the rest of 2011 before potentially hitting bottom and the market likely will continue to fall for the rest of the year before going stagnant. The report indicated that since the collapse began from the pricing peak of 2006, prices have fallen 33 percent which is more than the 31 percent dive recorded between the 1920s and 1930s.
“This report clearly shows the U.S. economy is having trouble emerging from what is the worst recession since the Great Depression and the housing crash has been larger and faster than the one during the Great Depression,” said Vito Torchia, Jr. “It is very likely the Banks are going to do everything they can at the expense of consumers to protect their margins.”
Media coverage of the study also noted that with the national jobless rate rising, home prices in a dozen metropolitan regions hitting the lowest level since the collapse began and struggling to return even to roughly 2002 levels, it is likely there will be a double-dip depression in home prices and the U.S. housing market has not yet hit bottom.
“Dealing with a bank about the loss of a home is a dehumanizing and legally intricate situation and a positive attitude and patience is extremely difficult to maintain,” said Vito Torchia, Jr. “As experts in helping homeowners stop foreclosures, we share daily in the challenges they face and deal with banks on their behalf.”
ABOUT BROOKSTONE LAW, PC
Headquartered in Newport Beach, Calif., and with offices in Los Angeles, Calif., and Ft. Lauderdale, Fla., Brookstone Law, PC is a law firm comprised of attorneys with experience and success in business, corporate and personal finance, employment, entertainment and media, art and museum, intellectual property and real estate law. The firm has a network of more than 40 affiliate attorneys nationwide and employs highly trained specialists, paralegals, paraprofessionals and administrative staff dedicated to serving clients. For information, call (800) 946-8655 or visit Brookstone Law.com (http://www.brookstonelaw.com).
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