Foreclosures High As Banks Actively Foreclosing Homes

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When will the US economy recover? That is the question which is foremost on the minds of most Americans. Unemployment is at its peak. As people lose jobs, even those with very good credit scores are faltering on mortgage payments. Hence, foreclosures are high.

Nevada is one such state where foreclosures are indeed very high. Fernley is a case in example. The city has the US highest rate of foreclosure. The recession has indeed hit the city very hard. Fernley has witnessed above 3,500 filings in the last one year. The city has 17,900 residences.

According to RealtyTrac, banks are actively foreclosing homes. Banks are swooping down on homes and issuing default notices. However, the worst is not over as yet. When compared to August last year, the rate is more than 25 %.

A problem plaguing the economy is that of negative equity homes. These homes are underwater, meaning the owners owe more on them than they are worth. The vice president of Coldwell Banker Andover, Lisa Johnson-Sevajian, I don't think we've seen the worst of it yet. But there is a lot of opportunity for first-time homebuyers to get in and create an investment for themselves.

Yet, homeowners do not have the necessary funds to invest in homes. Most of them do not have jobs. And even those who are employed have suffered pay cuts. The government has taken firm steps to stem foreclosures. But the program has not met with success. When the program was initiated by the government, it was thought that 4 million people would receive assistance. Now only 33,000 people have got help.

What is of great consternation is that a town may have beautiful houses. But the prices of homes are only $100,000. That is because of unemployment. The government has not been able to create employment. Of course, the value of a home is directly connected to the economy.

In the US, unemployment numbers are still very high. Around 14 millions are still without jobs. The American dream has been dead before. But the economy has always recovered from the depths of depression.

Economists are suggesting that rent should now be an option. Homes should now be made available on rent. The government has even come up with motels for people to live in. The situation is indeed very bad. Everyone is waiting for the economy to limp back to normal.

About the Author:
Karen Anne, has been working on ForeclosureRepos.com studying the foreclosures market, helping buyers on the finer points of repo homes. Try to visit ForeclosureRepos.com and search bank foreclosures for sale.



Article Originally Published On: http://www.articlesnatch.com


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