Grappling With The Tides Of Foreclosures
Since the Great Depression America has not seen such high vacancy rates. In the next two years about 2 million mortgages will be in default. In some areas the malaise is more intense than others. The worst casualties are Florida, California and Nevada. The accusing finger points to the sub-prime mortgage that in turn led to a housing boom.
The middle and lower income groups are bearing the brunt of the foreclosure waves. The Rust Belt cities with weak economies have been the most vulnerable. Here the population numbers are on the decline. Wayne County, Michigan including Detroit is led the foreclosure figure in 2007. Cleveland has been dubbed the ‘sub-prime capital of US. Here as many as one out of ten houses is lying deserted and empty. Slavic Village in Cleveland was once inhabited by tight knit Polish and Czech immigrants. Today with hundreds of abandoned houses entire streets have been taken over by criminals busy stripping the houses of whatever is left.
The greatest danger is that this infection will inevitably spread. With the houses worth far less than the loans there is slump in the real estate market which will pull down credit markets and the general economy. The problem right now is that even a slight rise in foreclosures is causing panic and abandonment bringing down with it the value of property in the adjoining regions and emptying tax kitties of the local authorities. Police, schools, civic maintenance services and the like are badly affected.
Some cities like Chicago and Boston have tried to build firewalls anticipating doomsday even before it came knocking. Impending defaulters were being identified and offered help by local community groups backed by the government to stave off foreclosures. Hotlines have been set up and local lenders have joined hands to stem the tide that affects all.
But the call of the hour is federal support to bolster up the real estate market. A plan has been proposed by the Center for American Progress and Enterprise Community Partners that seems viable. The map is to create a fund – Great American Dream Neighbourhood Stabilization or GARDNS. It will provide money for quick sale of houses to those qualified families with low income on reasonable terms. If such a buyer cannot be located there and then, the house would be rented out with preference being given to a scheme known as rent-to-own.
Search Foreclosure Houses
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- Housing Crisis Continues to be Plagued with Foreclosures
- Congress is Finally Suggesting Concrete Steps to Rein in Lenders Proceeding with Foreclosures
- Rockwall Lady Continuing to Save Foreclosed Homes
One Response
From Wolf Laurel in the NC mountains – The housing recession is negatively impacting property sales in Florida and across the south as well as slowing sales in NC mountain resorts that depend on Florida buyers.
Still the downturn in prices and building of inventories is starting to attract second home buyers from Florida looking for cool temperatures in our mountains. Also the dramatic decline in the dollar combined with weakness in American real estate markets are beginning to interest some bargain hunting European investors.
Ron Holland, Broker/Realtor with Wolf’s Crossing Realty. Ron markets resale mountain and ski resort properties in Wolf Laurel and The Preserve at Wolf Laurel. The credit crisis and housing meltdown offers serious risks but also some opportunities to Americans. He has a free report on the crisis titled “From Real Estate Bubble To Buyers Market”. See http://www.ronaldholland.com for more details.