With this boiling economic crisis hurling across the country, the number of foreclosure homes have steadily risen for several months reaching a staggering 71% last September, instigated by an unemployment wave hitting several states and major cities.
Economists attributed the rising cases of foreclosures to two factors, basically plummeting home prices and a steady increase in unemployment. Loss of income would eventually deplete individual and family savings, and would ultimately translate to delinquent payments in mortgages and loans.
Statistics regarding foreclosure homes have confirmed this, wherein 45.5% of delinquent payments last June were due to unemployment or income loss, a significant rise from 36.3% from the same period in 2006.
Over 1,000,000 Americans now suffer from unemployment, with over 200,000 jobs lost in October alone. Most of these people have worked in steady jobs with good pay rates, prompting them to confidently take on mortgages and equity loans. They have never imagined that they will face foreclosures, until they lost their jobs. Now, they lack the means to fully pay for their monthly loan obligations, and could only take on jobs that are way below their required pay grades.
The country’s economic deterioration has affected several states resulting to massive lay-offs, company shutdowns and business closures in hard-hit industries. A vicious cycle is now unfolding as unemployment continuous to aggravate housing crisis resulting to more foreclosed homes. The housing crisis in turn generates lower revenues for housing and mortgage related industries resulting to more unemployment.
Unemployed individuals faced with the imminent threat of foreclosures, are seeking counsel from both non-profit agencies and for-profit companies that specialize in foreclosure prevention. Most of these assistance and services focus in helping customers on mortgage restructuring or modification. This can provide some relief for these Americans, until they can bounce back on their feet and get back on the road to economic recovery.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites