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U.S. Government Cannot Stop Foreclosure Homes in Nevada

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By : John Cutts    99 or more times read
Majority of economists agree that the federal government will not be able to stop foreclosure homes from taking its toll on Nevada's economy, but they also agree that without the aid from the government, the state would have been in worse situation.

The number of foreclosed properties continues to rise in various areas of the state, including those under Henderson foreclosure auctions. According to economists, without the aid from the government, including the more than $3 billion worth of stimulus funds from the American Recovery and Reinvestment Act bill, more state employees would have been laid off and the state would not have been able to extend unemployment benefits to those who needed them.

As more properties fall under Nevada home auctions, the state's economy deteriorated further particularly when unemployment rates reached over 14% during June 2010, the highest rate among all states in the U.S. Nevada also has the highest rate of foreclosures in the whole country during the first six months of 2010.

According to economists, without the monetary assistance from the government, the state could suffer from Great Depression-like unemployment which went as high as 25% during those years. However, economists also admitted that federal assistance alone will not be able to stop foreclosure homes from dragging the state's economy down nor will it be enough to revive Nevada.

Experts have stated that aside from high numbers of properties under foreclosure lists sales, the state is also suffering from a construction industry collapse, lack of tourism revenue and the failure of the state to diversify economically when it had the chance. They stated that construction and tourism were the biggest support for the state's economy prior to the recession.

When the economic downturn hit, these two sectors suffered the worst. The financial services business was also another industry that was sunk by the recession, experts have added. Local statistics showed that in the past three years, Nevada had lost almost half of the total number of jobs in the construction industry. This makes it impossible for any monetary assistance from the federal government to make a difference on the construction industry or have the ability to stop foreclosure homes from harming the state's housing sector.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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