Stopping Foreclosures: For the Good of a Few…..Many May Suffer.

Posted on October 9, 2010. Filed under: Economy | Tags: , , , , , , , |

       Not to sound extreme, but the ramifications of many of these politically driven decisions seem like a straight path to socialism. For the good of a few, we will look at the top earners and punish them….not to mention all the other workers and industries that rely upon foreclosures. It seems to be a way to help bring the classes to an equal level of living…an eliminating of classes, which in definition is communism/socialism. To argue my point of why this makes me feel a little bit nervous about the future I will explain so that you see I am not extreme right not looking at the whole picture- but just extreme American that loves being an America where entrepreneurship flourishes and freedom abounds. Poverty can create a state of paralysis with no real way out.

          I judge no one for getting into a position of foreclosure, it is not my place because all circumstances differ. Many homeowners purchased homes they could afford, but do to the economy incomes have been cut or disappeared due to unemployment. In this economy losing your job is almost a sentence to FINANCIAL DEATH because you can not find another job opportunity and if you are lucky enough it will take some time and you most likely will be taking a severe cut in pay. So no I do not judge the individuals and sure there were people who got into squirrelly loans and went over their means, but they didn’t just choose to be in a position where they wanted to not pay their mortgage and be in default…no one dreams those dreams. They were individuals wanting to live the American dream and were until financial strains threw in a curve ball.

     In looking at the population as a whole the few that are on the verge of foreclosure are breathing a sigh of relief right now. I know they must feel relieved, but for the short-term “pain relief” we are going to see so many others suffer. Did they think about the domino effect?

    Mortgage/Lending Industry. Obviously they will be hit and suffer another blow. Most of these companies and individuals that are around have survived the last five or so years by making modifications to meet the demands and needs of today’s homebuyers and homeowners. They have learned how to change gears and still stay in business. Many still becoming more and more successful by finding the right niche. Most in this industry have been relying on the mass number of foreclosure sales and renovation loans that are associated with many of these purchases. What will they rely on now to pay the bills? Will homebuyers still flood the market to buy non foreclosures that are at market value, or will they wait until this passes to find a great deal? I believe we are going to see some cleaning house in this area.

    Closing Attorneys. No foreclosures to sell, no closings to be had. Once again they will feel another hit and many will not be able to ride out this storm. For those of you that think you won’t miss another attorney…think about the staff that assists them from secretaries to cleaning services it never just ends with one, we are like a complex career web.

    Realtors. Of the realtors that are still active, many of them will share with you that although they have had to sell more inventory because of lower commissions, they have been relatively busy selling short-sale and foreclosures. I have heard a few people say this should allow the non-foreclosures to now sell at a fair market value and boost those sales, but I am afraid that the banks may even get more strict on credit scores and raise the down payment requirements for fear of lending money to new homeowners that may just decide to stop paying because they will have no fear of foreclosure. Honestly, if your neighbor isn’t paying their payment and you are having a tough time, but you know that the banks are not going to be able to move forward on foreclosure processing for up to possibly a year, you may decide to miss a payment or two during hard times. Just a thought, but I know it will happen because no one knows what will occur at the end of the investigation. You may get to be a part of another bail out and not even lose your home, just pay on a sliding scale. I don’t know, they don’t know and that is what makes economies come to a halt when their is uncertainty and fear.

    HomeInspectors/Appraisers: This is a big industry and one that has grown due to many individuals in the residential construction industry that no longer were building due to such low demand as a result of a large volume of foreclosed homes on the market and a recessed economy. Many found that this was a place they could use their knowledge and still build a business due to the demand for their services related to foreclosures. Many will be looking again for what will keep the lights on at home because the demand just came to a screeching halt.

   Construction/Remodeling/Clean-up Services: If anyone has walked a foreclosed home, it may be a great deal, but usually they are in need of major repair due to neglect or a foreclosed homeowner trying to sell every last fixture before they were evicted. Rarely do they come in perfect shape. This has been great for the residential construction industry and suppliers such as Home Depot and Lowes. There has been a demand for remodeling, junk removal and lawn maintenance services. This has become the lifeline to an industry that is hurting.

I absolutely realize that we are in a very difficult state as a Nation. I know I don’t have all the answers and I do know that foreclosures are a problem. Anyone can look around in their own neighborhood and see the evidence that our economy is in trouble. But is it going to fix anything by halting foreclosures? How many others will be affected? Have we thought about the office cleaning services, office maintenance, office supply businesses, and on and on that are also bringing in business from real estate related business.  Will helping those in foreclosure trouble help the masses? I believe that it may ultimately help the masses because unfortunately many of the above mentioned businesses that have relied on foreclosures to stay afloat will now be the very ones that may have to breathe a sigh of relief that their home can not be foreclosed on for a time do to this decision. I am hoping that I am wrong and that my fears are not realized…..but if more and more people lose their jobs we are headed to government dependence unless we continue to be innovative and look for new ways of networking ourselves and our businesses to become strong!

  

It has touched everyone somehow….it is the cancer that is spreading. How do you fix it….or can you ever?

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