“Superstorm” Sandy Causes Foreclosures To Rise

National Downward Trend Reversed In Storm Hit States

Despite the recent trend of decreasing foreclosures across the United States, there has been one exception to the rule: the east coast. Financial experts and bankruptcy specialists claim that the toll created by Hurricane Sandy and the devastation it left in its wake has caused a huge spike in home repossessions.

According to a recent report released by the federal government, bankruptcy filings as well as foreclosures have decreased in fiscal year 2012. In a reversal of this positive trend, however, the rate of homes being repossessed has actually increased significantly in at least three states on the east coast. These locations, New York, New Jersey, and Connecticut, also double as the three places hardest hit by Hurricane Sandy.

As the report suggests, these two facts are not unrelated. At the end of October, New York and New Jersey say a gigantic spike in foreclosure rates, enough to double the rate from the previous year in just a few days alone. Connecticut, also suffering from extensive storm damage, took a beating as well, seeing an increase of 41 percent.

Foreclosure Settlement Strikes Against "Foreclosure Mills"

Experts claim that the spike was almost certainly caused by the devastation left in the hurricane's wake. Those increases, the three largest in the United States by a significant margin, were a result of the economic pressure created by the storm. Thousands of homes were damaged in the chaos, creating a financial drain, which was made doubly difficult when flooding and power-loss kept many people from working during the storm. The combination of these factors made making mortgage payments more difficult then ever for many Americans in these states.

The overall picture, however, is looking far better. Many of the states hardest hit by the foreclosure crisis in recent years, including Florida and California, are beginning to show the first signs of recovery. A recent settlement against many of the largest real estate firms made waves across the county, after a number of agencies were accused of improperly handling paperwork in their haste to file foreclosure notices.

The so-called "foreclosure mills" were made to pay a substantial sum to their victims. As a noticeable side effect, experts say, many firms have grown more amenable to short sales and other alternatives.

A Bankruptcy Attorney Can Help You Protect Your Home

If you have received a notice of foreclosure, it is imperative that you seek help from a trained legal professional immediately! With the experienced team at Price Law Group, you can fight to protect yourself and your family from predatory "foreclosure mills". We are dedicated to providing aggressive representation on your behalf. Visit our website or contact our offices directly to receive a free initial consultation and learn more about the options available to you today!