Economic Recovery Hampered by Foreclosures
The economic recovery would be looking a lot rosier if it weren’t for the piling up of foreclosures that seem to be continuously indundating the economy as of late. We’ve heard some promising signs of increasing consumer confidence, but the foreclosure rate still seems to be catching up to all of this bad lending that occurred, and it’s certainly not being helped by the continuously mounting job losses. People are losing their jobs at record rates, pays is being slashed and companies are still mulling more cutbacks to catch up with the faltering economy, and this can only result in more trouble for homeowners who are already pinched in the light of the multitude of financial factors that seem to be piling up against the average citizen.
We just wrote recently about how college grads are having mounting debt troubles with credit cards they got as college students that tended to add more percentage points to their rates at the most inopportune time, and this is another addition to the problems we are seeing facing all age groups. College grads are being hit hard since they tend to have bundles of college tuition and living expense debt piled on to credit card debt that is mounting and revolving every month so they can never seem to get out of the mess. They are also faced with awful job prospects, many times being forced into something that doesn’t pay very well and is not in their field.
People who are trying to get more affordable mortgage rates so that they might avoid foreclosure, or a payment plan that is targeted to people in financial trouble, as many mortgage companies are being forced to offer because of the increasing issues with homeowners not being able to pay their mortgage, are saying that they are facing huge backlogs and are having to wait a long time for relief.
This time amounts to higher rates of foreclosures and more of a chance that these individuals will default and buckle under the pressure. Many people are frustrated and even abandoning homes that they owe way more on than their worth. I totally get this part, not the abandoning the home, I think that’s irresponsible and really destroys your credibility with creditors in the future, but the part about owing a lot more on your home than it’s worth.
It’s frustrating when we constantly get notices from Zillow, an online appraisal service that gives a general idea on what your home is worth, that say our home has decreased, yet again, in it’s value, and looking at our mortgage statements that say we owe a staggering amount more than the dollar value.
