30 Jan It’s Confirmed, Foreclosures Are Up!
Like the news media, statisticians are catching up to what we all have known for months: The number of new foreclosures filed in that last 12 months have increased nationally by at least 75%. In the State of Connecticut, that number is 100% meaning that new cases have doubled and in the inner cities, that increase is 400% to 500%; four to five times the previous year. There were over 2.2 million homes placed into foreclosure in 2007 nationally. Folks, that is a lot of families out of their homes. The middle class is truly in crisis.
So what does the government propose to do about this mess? The President wants to give some people $600. Well, that might help make a mortgage payment or buy some gas, but it doesn’t save a house. The State of Connecticut started a loan program, but the qualification requirements are so strict that it is limited to about 300 families in the entire state. Other programs will simply result in new loan charges and only postpone the inevitable.
Congress has a proposal in front if it right now to allow families a remedy in Chapter 13 to modify the mortgage and save the home. Hearings are progressing right now in Washington. Time to contact your Representative or Senator to ask for their support of this measure. The banking industry opposes it, so it must be good. At least the media gets it.
Keep in mind that families in foreclosure don’t buy big screen TVs. When a family loses their home, the fallout is felt across the board. Not only do real estate sales fall, but so do car sales, consumer goods and savings for retirement. This leads to loss of jobs in all industries and the cycle becomes extremely hard to break.