Housing prices have plummeted in the last year in Ferguson, Missouri. The average home sold for $66,764 in 2014. In the last three months of 2014, average home prices dropped to $36,168 and have steadily declined. Today, the average price for a home is $22,951 and still falling.
Ferguson’s housing is in serious trouble. Foreclosures in this hamlet jumped almost 73% in the last few months of 2014 and the first few months of 2015. Almost half the homes in Ferguson are underwater (their value is much less than what is owed). Many homeowners are throwing up their hands and walking away.
Moody’s Investors Service just cut Ferguson’s credit rating to ‘junk status’ citing the city’s sharply deteriorating finances. Ferguson was downgraded seven notches from an Aa3 rating to Ba1 rating. At the risky rate the city’s finances are dropping, the city is slated to be insolvent by 2017, which means it will have to file for bankruptcy.
Worse, Moody’s ratings could be completely withdrawn if the city continues to fail to provide requested information on cash-flow projections, legal costs and insurance coverage for legal settlements.
The city has had severe and rapid deterioration of its depletion of funds and very few options for restoring fiscal stability. Like most cities, Ferguson depends upon tax revenues generated by homeowners, based on the assessed value of the home. With homes nearly worthless, the projection is grim and there is no relief in sight.
If you are facing foreclosure or have a foreclosure related legal issue in Colorado, there is help. Call Gantenbein Law Firm at 303-618-2122 to schedule a consult and discuss your best legal options.
Gantenbein Law Firm also has experienced Denver, Colorado IRS tax lawyers, business law, real estate and estate planning attorneys. For more information on our attorneys and practice areas of law, visit our website at www.gantenbeinlaw.com.