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Tales of Families After Foreclosures

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By : John Cutts    99 or more times read
The increasing number of repo homes in Ohio, Michigan and South Carolina is a reflection of thousands of shattered American family dreams.

Most of these families who saw their properties turned into repo homes have either rented, live with family or friends or take refuge in shelters.

They have volumes of unpaid bills, closed savings account, negative credit score and endure the feeling of failure, shame and displacement.

Ohio foreclosures increased by 45 percent or 86,000 repo homes in 2008 from 2004. According to the Ohio Supreme Court data, a total of 85,773 homeowners in the state were affected by foreclosures, a gain from 59,041 in 2004 and 83,230 in 2007.

Most of these families who have lost their homes to foreclosure are always moving forward and making an effort to rebuild their lives.

Meanwhile, the Michigan foreclosures rate increased by 10 percent from January to February 2009, with one in every 360 properties were repo homes.

Some families have seen their homes sold at last year’s sheriff’s auction at prices way below the original market value. Some of them argued that because they have reached the bottom in their lives, they have nowhere to go but up.

On the other hand, South Carolina foreclosures increased by 254 percent compared with repo homes data of February 2008. What makes matter worst for families in South Carolina is that as foreclosures surged, so did the unemployment rate which reached 10.4 percent.

Some families who saw their properties turned to repo homes were inexperienced in the process of home buying, have flawed credit background and minorities.

According to data from Federal Reserve, most black homeowners who took out mortgages in 2005 opted for subprime loans. Meanwhile, only 17 percent of white families had availed of subprime loans. The data showed that the brunt of foreclosures fell on minority homeowners in South Carolina.

Nationwide, foreclosures increased by 6 percent in February 2009. This increase was reported despite moratoriums offered by major mortgage lenders. The figures strengthened industry speculations that moratoriums are not providing the much needed help required by homeowners who are in default and on the brink of losing their properties to foreclosures.

Though distressed homeowners may not be immediately forced out of their repo homes, it does them no good in the long run if the mortgages they owe are more than the market value of the house.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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