Nevada and Florida Hit the Hardest by Foreclosure Crisis
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Two of the states to be hit hard by the foreclosure crisis are Nevada and Florida. Many things are at stake here. In fact, as the President seeks a second term in office, these are the two states that will be the main decision makers. Following closely are Colorado, Arizona, Ohio, and Michigan. These regions will also play a major role in Obama’s electoral policy.
In Nevada, a major problem plaguing the market is that of homes with negative equity. Here homeowners owe more on their homes than they are worth. The situation is bad and is referred to as “underwater.” Closely on the heels of Nevada is Arizona where the number of foreclosures is 51 % .Michigan and Florida follow suit with 36 % and 47 % respectively.
It may be pointed out here that the states where the foreclosures are the highest are also the regions where the largest chunk of voters resides. In fact, both parties will spend a lot of money in the general elections next year.
In fact, these are the people who are being targeted for the refinance option. If the refinance program succeeds then the President could reap good rewards in these states that are crucial for his re-election as President next year. The number of electoral votes in Ohio, Michigan, Arizona, Nevada, and Colorado are Florida is pegged at 89.
This is a third of the total electoral votes that the President needs to win – 270. It may be pointed out here that the President won every one of those votes except in Arizona in the last elections in 2008.
However, there are obstacles to this journey. Already the funds that are required to tackle the crisis under Troubled Asset Relief Program (TARP) have not worked out as well. Hence, the government is on a deficit as far as this issue is concerned.
People are not expecting much from the new program. According to a report of Federal Housing Finance Agency (FHFA), savings of families will not be as suggested — $200 per month. Rather, it would be as low as $26 monthly.
Critics are also of the opinion that the plan will help only 1 million although there are 11 million struggling homeowners under water. This is also being regarded as just another bailout. Even if one million people can be bailed out there are 10 million still left in the lurch.
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