When a massive economic recession hits, there are usually a few variables that can be blamed for its cause as well as a few that can be tracked to measure any real recovery that's made. When it comes to the Phoenix economy, the mortgage and real estate markets can be tied to both of these situations. Most people know that Phoenix and Arizona as a whole were among the hardest-hit areas in the country in terms of the real estate and mortgage markets, and after showing some brief signs of turning around, it appears that any momentum that has been gained by homeowners on a collective level has been lost.
According to recently published statistics, more than 200,000 homeowners in Phoenix are currently 50 percent or more in negative equity. This means that there is no available credit on these homes and the homes are also basically unable to be sold for a huge loss because the current homeowners will not be able to pay off the difference between the revenue generated with the sale of the home and the amount owed on the mortgage note to the lender. Therefore, these people are stuck, and this is also affecting their ability to find more gainful employment.
Other statistics reveal that Arizona's employment numbers remain in a dreadful state. While the unemployment rate has dropped slightly in recent months, it remains at approximately 9.5 percent, well above the national average, which has recently declined to 8.8 percent. More than 300,000 people in Arizona remain unemployed, and the state as a whole has added fewer than 2,000 jobs in the past year. The stagnation that occurs overall results from homeowners who cannot sell their negative equity homes to move to markets with better job prospects.
Phoenix Bankruptcy Lawyers
In short, until these problems are corrected one way or another, it looks as though the Arizona economy will continue to suffer. Many people mired in this situation feel as though there is no way out and no solution to be obtained. Fortunately, there are solutions available to just about every financial situation. However, the all-important first step must be taken, and that step involves having an experienced professional take a close look at someone's overall financial picture.
If you are tired of worrying about your finances and you're ready to work towards putting this stress in the past, you need to seek the help of Phoenix bankruptcy lawyers who have helped countless people obtain a fresh financial start. Contact the Phillips Law Group today to schedule a free initial consultation.