Increasing Number of People Affected by Foreclosures
February 17th, 2009
The growing number of foreclosures seems to be marring the American dream. The Downriver Community Conference of Southgate, held a forum in May, last year. On this occasion the delegate from the Department of Housing and Urban Development, Lana Vacha, clearly marked out the two reasons why the people face foreclosures. Sometimes it is the fault of the loaner who does not pay the loans on time and the loaner takes it back. At times the property tax is not paid and the property is taken away by the county. Michigan, at present is the place with the highest number of foreclosures recorded.
Nearly 102178 houses in the state are facing foreclosure and the Wayne County along with Downriver is recording a growing number of foreclosures every year. Within a gap of two years, 2007 and 2008, a rise of 1200 repo houses, is the latest record. This has resulted in a considerable fall in real estate prices. The state of Michigan is facing an economic crisis due to the shutting down of various manufacturing companies. This resulted in the fall of real estate value by 23 percent. From $122800 the price of a house has come down to$ 94600 in the year 2007.
Several factors have accounted for the rise in foreclosures. The risk that is taken while loaning, the mistake of taking loans those are beyond one’s means of repaying and the sharp decline in the property value, leave the house owner at a loss. Experts argue that it is not only the wrong decision of the owner but at times the medical expenses cross limits, the termination of one’s job, and loss of overtime payments all contribute to a shortfall in the budget, leading to a straitened condition and the owner fails to pay the loan regularly resulting in the foreclosure of his property.
Help is offered from various quarters and the HUD of the state of Michigan is now training people how to avoid foreclosures by doing a proper budget. Sound advice is also given to the owners about how to deal with foreclosure and the methods of making the right choice. Not only the owners, but also the neighbours who are secured, suffer too. The number of foreclosures gradually pulls down the real estate value of the whole area. An added problem is the growing grasses within the premises of the deserted houses. In winter the snow accumulates and indicates an unoccupied residence. It then becomes the den of criminals.
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