Florida residents continue to be confronted by serious financial challenges, despite the fact that there is evidence to suggest that the nation’s economy is beginning to recover from the recession. As a result, foreclosure and Chapter 7 bankruptcy are a very real prospect for many. And given that the state’s real estate market has not yet fully stabilized, many homeowners and lenders alike have major concerns about how to address underwater mortgages.
According to one source, Florida has the second-highest rate of underwater mortgages in the nation, equaling more than one quarter of all mortgages in the state. That is why Bank of America is hoping that the U. S. Supreme Court will offer clarity and consistency to how to address underwater second mortgages in chapter 7 bankruptcy cases.