Innumerable foreclosure homes for sale are raising innumerable questions. The sub-prime mortgage crisis has led to the increase of foreclosure homes for sale. No one gains from foreclosures. The loss of the borrower is obvious – loss of the house that was the home and loss of credit ratings. Lenders too do not gain – at least with the sharp increase in the number of foreclosure homes for sale. Lenders are burdened with too many units. It costs about $58,759 to run through the entire judicial process of foreclosure. No wonder then that lenders have put up signs reading ‘foreclosure homes for sale’.
The rising tide of foreclosure homes for sale affects not only the borrower and the lender but also the community and the government. With the surge in the tide of foreclosure homes for sale many units are lying vacant in the locality. These are adding to the number of houses unsold in the real estate market thus bringing down the price of neighbouring houses – houses that have had no direct contact with foreclosure. With rising number of foreclosure homes for sale the market is tumbling because there are more houses than buyers. The sub-prime mortgage debacle has caused many mortgage houses to run out of business. Those still surviving have tightened their belts and it is increasingly difficult to coax loans out of them for purpose of buying houses. So foreclosure homes for sale entering the market in generous numbers have done great harm to the housing industry as a whole. Building and developing is screeching to a halt dragging down other ancillary industries connected with it. This is leading to job losses and more people are unable to be current with mortgage payments. In turn it is increasing the number of foreclosure homes for sale. It is a vicious circle.
The number of empty foreclosure homes for sale is creating another type of problem for the community and the government. Empty foreclosure homes for sale are attracting criminals and creating health problems. This in turn is drawing the wrath of the community who are contacting the local law enforcing authorities. The latter are not equipped to tackle such large numbers of foreclosure homes for sale lying vacant. The stagnation in the real estate market has led to a drop in government tax collection. Thus the authorities do not have the requisite funds to uplift their infrastructure. There is all round resentment – something unsettling in this year of presidential election.
