Housing Market Affected By Foreclosures

Posted in Foreclosures, October 2nd, 2007 |

The business houses that arrange for low and moderate-income citizens to buy houses are being affected by the foreclosure crisis. This is despite the fact that thousands of houses are now up for sale – thanks to the latest catastrophe. For people wanting to set up homes in their own houses the moment could not have been worse.

Community Housing Coordinator gives counsel and provides financial help in matters of down payments, closing fees and rehabilitation programmes for those with slim to medium purses in Winnebago and Calumet Counties. About 35 families have been given assistance.

Logically with foreclosures going up it should be bonanza for those looking for wonderful deals; but in reality that is not so. The price range has not as yet come down to $1000,000. Foreclosure is a time consuming process. A representative of an agency, Bach, opines that one can hear a lot about foreclosures but not see the tangible impact on the market. Perhaps the house is there but the money is not there in the pockets of the ordinary buyer.

The year is tough with contradictions. Federal and State programmes have been cut. Counselling agencies have received double the amount of money as compared to the past from US Department of Commerce Division of Homes.
CAP is another non-profit organization targeting the low and moderate-income groups in Outagamie, Waushara, Portage, Waupaca and Marquette Counties. Their activity involves helping in buying houses, and improving skills of the residents to ease employment problems. This agency is facing another kind of situation – funds are there allotted for buying houses but there are very few applicants for the same. Anyone who walks in on this count will be assisted. But nobody comes despite the drums being beaten around to spread the message. No matter what the number of houses and the price the buyers just cannot afford it.

It is disconcerting but true that the poverty rate has gone up and the poor cannot buy bricks and stone. Unemployment is low but so too is the income. In 25% in Wisconsin are earning less than 2000 when inflation rates were adjusted. People are working on less pay and whatever comes in goes to feed the mouth. There is a saying that when the tide comes in all the boats rise. But what about those with rotten planks and rat holes? They begin to sink.