Foreclosures are continuing at a rapid fire pace that may accelerate in 2010, driven by rising unemployment, and adjustable rates resetting to higher monthly payments. 937,840 properties had foreclosure filings in the third quarter. Realtytrac dosn't expect it to peak until the end of 2010. Several factors behind the situation is the resetting of the adjustable rate loans, the current economic recession and the high rising unemployment rates that continue to climb in addition to the fact that people are unemployed for long extended periods of time, without and job opportunities to pursue. Resulting in a second wave of foreclosures in much of 2010. As long as unemployment is high so will the foreclosures be. California, Florida, Arizona, Nevada, Illinois, and Michigan accounted for 62% of the nations's foreclosure activity in the third quarter according to Realtytrac.
This is a serious problem, not only are the subprime mortgages being affected but now main stream America being affected by the fact that the recession has created high unemployment for millions of people but also extended unemployment for long periods of time. The refinance mortgage programs don't allow you to be unemployed to use them, which is even worse. If you add to all this the fat that the Senate has not pased a extension for unemployment and hundreds of thousands of people have exhausted their unemployment makes this even worse. The senate said they would discuss the matter in a few weeks. Everyone else got their bailout but when it comes to the American worker, they want to discuss alittle more! We the tax payer have to pay for the bailouts the least the senate can do is extend unemployment benefits until people can find work how ever long that is! The American people need to be able to feed their families, pay their bills and their mortgages!
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I have so many opinions on this issue. I'm not sure how I feel about stimulus packages, but providing money straight to the American public would have to have been at least as effective as signing a blank check over to the financial institutions, and not demanding any accountability. However, while I don't want anyone to lose their homes, I also don't understand how so many deluded themselves into buying a home in the first place: they purchased during record-high home prices and spent to their limit. On the other hand, if you lose your job, it doesn't matter what the price of the home was--you won't be able to pay your mortgage. Add into this that the number one reason for bankruptcy is medical bills...and we have one complicated problem.
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