Thursday, May 28, 2009

Foreclosure Crisis Deepens

The foreclosure crisis deepens.
More homeowners than ever before are falling behind on their mortgage payments and sliding into foreclosure, according to figures released on Thursday, a sign that the country’s housing crisis is spreading through the ranks of previously stable borrowers.

About 5.4 million of the country’s 45 million home loans were delinquent or in some stage of the foreclosure process in the first three months of the year, according to the Mortgage Bankers Association. About 12.07 percent of all mortgages were delinquent or in foreclosure, up from 11.93 percent at the end of 2008.

Temporary halts on foreclosures imposed by lenders and mortgage underwriters have mostly ended, and banks are moving quickly against delinquent homeowners.

Housing specialists said the number of foreclosures would probably keep rising as more people lose their jobs or are forced to trade full-time work for part-time. Nearly six million jobs have been lost since the recession began a year and a half ago, and many economists expect the unemployment rate to rise to 10 percent from its current 8.9 percent.

More defaults by unemployed homeowners could shunt more houses onto an already saturated market, economists said, dragging prices down farther.
This should come as no surprise as the ranks of the unemployed just keep growing. At a time when corporations need to be putting the citizens of this country first they are instead opting for profits over people. I know of many companies that are still outsourcing the jobs they have to India and other far away places. How is our economy ever expected to recover when this trend of outsourcing shows no limits to the number and types of jobs that are being lost?

When will Congress finally side with the American people and demand fair trade policies on not just goods but on services and employment as well. Jobs are a commodity and there should be tariffs on the services provided by workers in other countries. In the end your home is only worth what someone is willing to pay for it and in the current economic climate that doesn't appear to be too much.

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