The number of foreclosures during the recession helped some Americans pay off other debts, such as credit card bills, according to research from the Federal Reserve Bank of Philadelphia. Foreclosures peaked in 2009, and the timeline for processing them stretched out in some states for as much as three years, allowing many people to remain in their homes without paying a mortgage.
The economists looked at data from U.S. households that were already delinquent on at least one credit card before falling behind on mortgage payments and going into foreclosure from 2004 through 2010. Their research of more than 27,500 loans found people whose foreclosures took longer to process were more likely to pay off nonmortgage debt like credit cards.
However, the benefits are often short-lived. The results of the study indicate that the foreclosed consumers are less likely to stay current on all of their credit cards as they have to start making mortgage payments once the foreclosure ends.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
Related Resources:
http://blogs.wsj.com/economics/2014/04/02/some-americans-paid-off-credit-cards-while-waiting-for-foreclosure/