With Foreclosures and Unemployment Continuing it is Doubtful if Recession is Over
October 23rd, 2009
Many are talking about recession being over but with foreclosures and unemployment continuing unabated it is raising doubts. There are heart rending scenes all around. A grandmother and her two small wards had just carted eggs, milk, bottled water and other bare essentials when her credit card was refused after being swiped. It was a public humiliation but the general public was too engrossed in their own worries to react in proper manner. It is not unusual for a neighbour relaxing on the porch to see a stranger come to the adjacent house and paste a foreclosure notice.
The men doing this are specially designated to repossess not only cars but also houses that are homes. Contradicting these scenes are optimistic talks about how the recession turning back. Newsweek recently shouted, “The Recession is Over!” Barack Obama repeated these sentiments but ordinary Americans are skeptical. They cannot see or feel it. Maybe some who had suffered huge losses in stocks are beginning to feel good but the ordinary folks who have lost jobs and endured pay cuts continue to be a worried lot. People are continuing to lose their houses and jobs as they drown on debts. Millions are twiddling their toes without jobs right across the country. California has been one of the worst hit pockets.
In August the unemployment rate in California spiked to 12.2%. It means 2.2% of Californians are sans jobs. It is scary! There seems to be nothing to help them get back to honest work. It has to be admitted that the speed of job losses have lessened and that is something to be happy about. In July California lost 12,300 jobs. This is much better than 70,000 jobs that vanished each month from January to July. But even then the numbers are uncomfortably high. Jobs have gone for friends and neighbours.
This makes them unable to pay for their mortgages and so on top of this they lose their home and hearth. Most of the mortgage loans have gone underwater with the worth of the house being less than the loan amount. Technically in such a situation the victim is qualified to avail of Homeowner Affordability Program. But the problem is that banks and lenders who took the help of bailout money are now not in their turn willing to help the common person weighed down with exotic mortgages that should never have been contracted in the first place.
- Bouncing Cheques Issued by Title Companies Lead to Foreclosures
- Increase in Foreclosures Prompting Class Action Legal Suits
- Avoiding Foreclosures by Walking Away From Loans are not Without Problems
- Foreclosure Assistance Being Taken on Tour by Housing Advocate
- Washington Mutual, the Symbol of the Foreclosure Crisis, Continues to be in Trouble
- The Consequences of not Paying Mortgages Can be Grim
Related Posts
Posted in
Foreclosure |
No Comments »
Comments
Leave a Reply
Search
