Bankruptcy filings should surge in 2012 because the foreclosure pace is picking up speed, and because the world and U.S. economies are not headed for improvement in the near future.
I. Foreclosures In 2012
I haven’t written about foreclosure in a while, but an article in the Thursday Los Angeles Times has given me the impetus to do so.
In the January 12, 2012 Business Section, E. Scott Reckard reported:
California and other states are likely to see an enormous wave of long-delayed foreclosure action in the coming year as banks deal more aggressively with 3.5 million seriously delinquent mortgages. And experts said that dealing with the foreclosure process, from issuing notices of default to selling repossessed homes, is likely to push housing prices lower this year before the real estate market has a chance to recover.
Wow! Three and a half million seriously delinquent mortgages. That’s a lot of toxic real estate. If you’re one of those 3.5 million people with a seriously delinquent mortgage, isn’t it time you considered bankruptcy?
II. The World Economy
Is that the only bad financial news? You know better than that. Here’s what Sue Chang of the Wall Street Journal’s Market Watch reported on Friday, January 13, 2012:
Standard & Poor’s late Friday stripped France and Austria of their triple-A ratings and also downgraded Spain, Italy, and Portugal. France and Austria are now both rated AA+ while Spain is at A and Italy is rated BBB+. Meanwhile, Portugal’s rating was slashed to a junk grade of BB. The move had been anticipated after the ratings agency placed 15 euro-zone countries on CreditWatch negative in early December.
Continue Reading The 2012 Foreclosures, The World And U.S. Economies, And Bankruptcy