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Foreclosure Rates Affected By Unemployment
Tuesday, December 22, 2009
President Obama issued one of the largest investments in American history, the American Recovery and Reinvestment Act. The large government spending program was created to create jobs and increase the unemployment rate. In November 2009 our nations unemployment rate was at 10 percent, meaning over 15 million Americans were without jobs.
United States unemployment rate directly affects our housing statistics. If home owners do not have jobs then they fall behind on their mortgage and therefore they are at risk of loosing their house to foreclosure. In an interested note check out how unemployment rates in states affect the foreclosure rate. See foreclosure statistics
Besides the government spending massive amounts of money in our economy to try to create jobs, they have issued a loan modification program to help home owners who can not afford their housing payments. Loan modifications work well if someone can find a job fast or if they can stay on unemployment for a long duration of time. The issued with loan modifications comes if home owners can not find a job. For home owners who purchased their home before the real estate boom and before the real estate peak in the summer of 2005 there is a chance they have some equity and can sell their home to walk away from the mortgage. For most home owners they
purchased or refinanced their home at or near the peak of the real estate market and now that the real estate market has dropped they have no equity to sell.
There are a few solutions for home owners who do not have equity. I suggest talking with a real estate professional about the details of these solutions and the best option for you but, a short sale
, lease option, renting, selling to a real estate investor, or a loan modification are all possible solutions to sell your house or keep your home with lower payments.
If you are falling behind on your mortgage payment and are staying away at night thinking how can I sell my house
, the best thing you can do is to take action. Contact a local real estate professional that are experienced in short sales and foreclosures. What you should not do is avoid your mortgage company and do nothing. There are many options for home owners.
The good news is the nations unemployment rate is starting to decrease and the recession has officially ended. It may take another year before employers start hiring and opening new jobs but at least there is some good news for home owners.