Like Global warming, the Real-Estate market in many U.S. regions is getting warmer to hotter. Unfortunately, the heat is not good for everyone. As economies grow many are reaping benefits, however the economies that are lessening in strength are suffering repercussions. Foreclosure rates have been on a steady increase since the fourth quarter of last year. Foreclosure is a result of various situations including job loss, divorce, illness and many other reasons. Amid the many reasons people foreclose on properties, the fact is that it happens to thousands of people all over the U.S. Monthly loan payments, credit card debt and everyday needs become simply too much, and consequently many people default on loans and lose their homes to foreclosure.
Foreclosures can be precipitated by a series of events, but it is evident that sometimes people are simply in over the heads. An attribute could be high interest loans and no-down payment loans. Lenders and banks have been servicing people who theoretically do not qualify (based on credit) for a certain loan amount, offering low or no down payments. Foreclosure is never anticipated, at the time of accepting a loan and making a mortgage on a house. The borrower may not realize how high of an interest rate they have or that they do not have a fixed rate mortgage, which can hurt them down the line. Commercials air all the time with the motto “No credit, No Problem!” The problem with that is people are struck with unexpected life expenses and suddenly are unable to pay all monthly payments. In turn, they are defaulting on loans, thus losing their homes in Foreclosure.
According to the U.S. Bureau of Labor Statistics, states like South Carolina and Mississippi unemployment rates are at a high between 7 and 9.9%. An online property listing service, Foreclosure.com exhibits South Carolina to have 2, 574 Foreclosing homes. South Carolina’s population is 4,012,012 , whereas Mississippi’s population is 2, 844, 658, with 680 homes going into Foreclosure. Whiles states like Georgia and North Carolina are not suffering from unemployment rates as high as South Carolina and Mississippi these neighbor states do have relatively high number of residential areas in Foreclosure. Lubbock, TX is ranked the number five strongest economy in the U.S., according to Bureau of Statistics 2003 and as of today has 60 homes in Foreclosure, as listed by Foreclosure.com. States like California have a relatively low Foreclosure listing of 1, 601 meanwhile the number of houses in Pre-Foreclosure is a high 68, 262.
Conclusion
Foreclosure.com shows the U.S. Foreclosure rates to be on a continuum from 2005 to 2006, increasing from 91, 905 homes in December of 2005 to 121, 478 homes now,February 2006. Unlike Global Warming’s patterns which can be predicted based on climate evidence, Foreclosure rates and the Real-Estate market’s future can be contingent on economy standings as well as many other factors.
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