The Foreclosure Crisis is Worsening Every 13 Seconds
The foreclosure situation is worsening every 13 seconds with another house slipping into the dreaded zone, according to the Center for Responsible Learning of CLR. It is a non-partisan group engaged in research. Each day about 6,600 residential houses are foreclosed that calculates to one per 13 seconds. All the housing pundits agree that the key to the solution of the housing crisis is to help the foreclosed victims.
David Waldman writing in Congress Matters said, that the new numbers released by CLR show that the foreclosures are mainly concentrated in the fives states of Arizona, California, Florida Georgia and Nevada. There is in fact not a single congressional district ranked among the top 50 that is not in one of the five states. The most troubled ones are Republican represented. The Republicans comprise of 40 % of the House seats but correspond to 60% of the first 10 most affected foreclosure districts.
David Waldman also explodes another popular myth about foreclosures. Conservatives have all along claimed that the bulk of the sub-prime and other risky mortgages were connected with the minorities who borrowed. But the congressional districts with the most number of racial minorities are not likewise represented on the higher ranks of the foreclosure list.
The analysis by the CLR has come following the unveiling by the Obama administration of its plan known as “Making Home Affordable”. It has set aside $75 billion for modification of loans. It is anticipated that 9 million homeowners would be benefited from it.
The House also passed last week H.R. 1106 that would make it easier for borrowers to avail of court relief. The President of CLR Michael Calhoun was all praise for this action taken by the House. He said, “We applaud lawmakers in the House for passing legislation that is a crucial piece of the broader White House plan to stem foreclosures. The need to put the economy before politics couldn’t be clearer. In 2008, more than a million families joined the ranks of borrowers in default on their mortgage, half of them in the last three months of the year.”
It was pointed out by Damon Silvers who is a member of the Congressional Oversight Committee and AFL-CIO associate general counsel that the huge number of foreclosures has set off a chain reaction of negative results. Property values have dropped, mega banks have collapsed, credit has dried up and all this has led to international repercussions.
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