Economic Realities of Montgomery and Berks County Foreclosures
Areas like Pottstown and Reading, Pa. have hit hard times economically, and it has a direct effect on the number of foreclosures listed in those areas. In 2011, Reading had the largest percentage of residents living in poverty in the United States. Things have not gotten much better for the area struggling to find new forms of economic development after most manufacturing jobs left in the 1990s and early 2000s.
Nowhere is this more evident than in the large number of foreclosures in both areas, these are towns with high concentration of residential real estate. There are dozens of foreclosures listed for both Pottstown and Reading, Pa. on the March 2015 foreclosure list. However, areas with similarly high real estate concentration close-by do not have the large number of foreclosures that these areas do. Areas with high real estate concentration in Chester County like Phoenixville, Coatesville, and West Chester only have a dozen foreclosures listed for January 2015 combined.
This can somewhat be explained by those in Chester County having more financial options due to that area’s overall wealth. However, the real reason most likely comes down to basic numbers.
Foreclosure Rates | Berks, Montgomery & Chester County
As the foreclosure rate in an area goes up, the willingness of mortgage companies to work with homeowners go down. Mortgage companies realize that since there are more people looking to unload underwater homes, the mortgage companies have a better chance of forcing a short sale rather than working with the homeowner to negotiate a loan modification.
Chapter 13 Bankruptcy | Loan Modification | Foreclosure Options
If you live in the Pottstown or Reading, Pa. area, you are likely finding it hard to get your lender to work with you to modify your loan. Our office can help however. We may be able to litigate the foreclosure or loan modification, but in many cases your best option may be a Chapter 13 bankruptcy. This allows you to get caught up and keep your home, and forces your lender to accept a much lower amount than what is actually owed without the option of foreclosing on your home.
Chapter 7 Bankruptcy Options
Our attorneys may also recommend filing a Chapter 7 bankruptcy if you owe more than the property is worth. This option allows you to let go of the property with no future burden to your mortgage company.
The Law Office of Stephen Ross offers no-cost consultations who are worried about their foreclosed home. Contact us today!