IRVINE, Calif./ Dec. 5, 2018 (STL.News)
With the S&P 500 closing firmly below a key benchmark at 2,750, the law firm of McFarlin LLP is sending out a market alert regarding the next leg of the financial crisis that started in 2008. This could affect millions of California homeowners and consumers.
Many market observers attribute this week’s failed rally to the “inversion of the curve”, the trade war with China, Fed rate-hike fears and/or political unrest. But the truth is that our bubble economy is being financed by consumer and government debt.
The financial markets have failed to rally above the September 2018 high and have put in a series of failed rallies since. This is bearish and a harbinger of things to come.
While the number of foreclosure filings have declined over the past several years, the firm believes that the number of Orange County consumers who may be blindsided by the next decline could be significant. Why? Because many homeowners who recently modified their loans under the Federal Government’s Home Affordable Modification Program (HAMP), or in-house bank modifications since then, will likely be forced into re-default on their restructured mortgage as the economy slows and debt accumulates.
78% of American workers are still living paycheck to paycheck. This means that many homeowners are one “hiccup” away from falling into (or back into) foreclosure. Total consumer debt rose by $219 billion in 3Q18 which pushed total debt to a record $3.95 trillion, according to the Federal Reserve. “We are monitoring closely the level of consumer debt. This is a critical metric,” observed Timothy G. McFarlin – Managing Partner of the law firm and real estate expert. “We know that many homeowners are borrowing from their lines of credit (i.e., credit cards) to avoid foreclosure and preserve their lifestyle. Unfortunately, this can only last so long, and we expect a sharp rise in foreclosures and bankruptcies within the coming year.”
Although lenders and their servicers are in a financially advantageous position, informed consumers can make strategic choices that leverage State and Federal law in their favor. “Our goal is to get the word out to as many homeowners as possible to take stock of their financial situation and let them know that McFarlin LLP stands ready to defend their rights with respect to their property and debt collection efforts.”
If you are among the fortunate homeowners who have built or recaptured equity in your property since the financial crisis unfolded in 2008, you must strongly consider locking in your hard-fought gains over the past decade. The selloff in the financial markets is also confirming the top in the housing market — evidenced by the downward trending S&P Corelogic Case-Shiller Index since its peak in July 2018. Our Real Estate Transaction Group guide clients through every step in the real estate transaction cycle to ensure optimal results. Having our attorneys represent you in a real estate transaction will cost you no more than a typical real estate agent.
McFarlin LLP (www.mcfarlinlaw.com) is Orange County’s preeminent real estate, foreclosure defense and bankruptcy law firm. The boutique firm provides borrowers and homeowners with practical advice to not only survive the next financial crisis and housing bubble, but thrive by strategically taking and reinvesting housing profits at the right time for prosperity.
Contact: Timothy G. McFarlin, (949) 544-2640, [email protected]