Vice Like Grip Of Foreclosures On National Economy
Foreclosures are on a record-breaking march. In Jackson County it has crossed 950 – the highest in two decades. It is 10 times more than what it was a decade ago and as yet the year has not closed. All are pointers to a deep-seated economic malaise.
Heads are put together to solve the crisis while more are falling under the tramping feet of foreclosures. Jackson County is not alone in its misery. Michigan State ranks fourth in the country as regards foreclosures. Vacant houses are creating other allied problems. Questions about public safety and less tax collection are causing grave concerns. The government is now beginning to sit up now that its coffers are beginning to take on a slimmer look. To say the least – the economy is tottering.
Experts say that foreclosures are a result of several factors. Jobs are getting scarce, floating interest rates are rising and a falling property market is coupling with declining income to trigger off more foreclosures. Till now housing ownership numbers showed an all time high. Now the same numbers are climbing down with more becoming homeless.
Foreclosures do not give much time before the grip of its tentacles surround the victim. One slip in payment is enough to start it off. The rule is that the borrower must fall behind by 60 or 90 days before being treated as going into default. If payment cannot be made then the house is put up for auction and if it does not sell then it goes back to the bank that lent the money. The whole process might be finished off in three months or linger for eight to fourteen months.
Once the bell of foreclosure starts to ring the borrowers slip into such a state of trauma that they cannot do anything – become like the hypnotized bird before the hissing snake. It is a dangerous mistake to allow oneself fall into this stupor. The first thing to do is to talk. Avenues will open up.
Lawyers of different states are working overtime to find a solution. At the forefront are the politicians of all shades. The main objective is to help house owners opt for secure fixed rate loans and stay under their own roofs. The latest scheme of the Republicans would be registration of loan officers to allow for more accountability and transparency.
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