Reckless lendings' fallout continues
Filed under: Borrowing, Credit, Debt, Home, Real Estate, Bankruptcy, Mortgages
The Mortgage Bankers Association (MBA) reports that a record number of loans -- one in seven -- is delinquent, up from one in 10 a year ago.
Today's numbers also show that one in 22 families in the U.S. is in the process of losing their home, up from one in 34 a year ago. Based on these figures, we are now on track for 2.9 million foreclosure starts in this year alone.
The lenders' trade association is quick to blame this worsening trend on higher unemployment levels. But that ignores the fact that reckless lending precipitated the economic crisis and prolongs it each day with every new foreclosure, which forces down surrounding property values.
These foreclosures are devastating for a family and a community. I consult to Ozaukee Family Services in Wisconsin, and we are seeing family after family struggling to keep their house or support their children after losing a job. Yes, some bought houses that they could not afford, but the majority of people coming in are just like me.
They are people who have worked hard and have lived within their means. But a sudden job loss, medical crisis, or family problems have left them using up resources and struggling for the basics.
Ozaukee Family Services is located in one of the most affluent counties of Wisconsin yet we had hundreds of people lined up a few weeks ago to sign up for energy assistance.
I know that our experiences here are but a microcosm of what is going on in the rest of the country. The fallout continues.
Barbara Bartlein is the People Pro. For her FREE e-mail newsletter, please visit: The People Pro
Reader Comments (Page 1 of 1)
11-23-2009 @ 3:26PM
Unemployed said...
Wait till all the Unemployed folks out their start getting foreclosed on. This is just so sad, they lost their jobs to no fault of their own and now have to face being foreclosed on! All because the Banks are sooooo GREEDY. The Banks got the help they wanted and now that MainStreet needs the help they won't even try and help! Someday I hope they will all have to face what we here on MainStreet have to face and when they come running again for help WE WILL NOT HELP THEM!!!!
Something needs to be done to help all the Unemployed Homeowners stay in their homes. Quit delaying and start doing something about it! WASHINGTON needs to do its job and start this time with MAIN STREET.
Anyone out there that is being FORECLOSED on PLEASE call your Representatives and tell them this is WRONG and tell them they need to help those who really need it! If they don't do anything then vote them ALL OUT!
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