Repossessed homes, the consequences of going through foreclosure on the hard working publics property, are a drag on this economy. When a home is repossessed, that family’s income is no longer put back into the economy, on the contrary government money whether welfare or other government aid will be directed to someone who now has no roof over their head. It is difficult to sympathize with those who used their homes as “cash cows” taking money out for luxuries which were unnecessary and ostentatious. But this is a different story if an illness, or loss of employment caused them to go into debt on their credit cards, and were now unable to meet their property taxes or mortgage.
Some lenders fooled buyers outright by giving them mortgages that changed interest rates drastically, without explaining these changes. This is true. But, buyers that did not know that in addition to a mortgage there is insurance, home repairs and lots of taxes were foolish. They still bought a home which when the previous items are taken into consideration, brought the process of home repossessions upon themselves.
Others were convinced by advertisers that a home will always increase in value and that they should not rent. Everything evens out. If you sell a home after 30 years you probably paid 2 1/2 times the original value, so you do not walk away with as much as you think. After taxes and realtor commissions your profit is not that great taking inflation into consideration. We are driven by greed. A home has historically been a place to live, not to invest in and sell for a big profit. Already advertisements are proliferating on the radio about how now is the time to buy a home since prices are not falling as much as before. If this is true why are there now 40 and 50 year mortgages? Because homes are beginning to be out of reach of many Americans.
The banks were supposed to slow down the repossessions by lengthening the mortgage or lowering the interest rate. Whether you agree with rewarding some who got into trouble on their own volition or not, the banks have not really done much with the foreclosures. They just had a short moratorium on bank repossessed homes increasing. It would be in the interest of the banks and the agribusinesses to grab as many repossession homes and as much farmland as they can. So is life in modern America.
A home is in essence your castle. A home repossession is a terrible degrading and embarrassing occurrence. With the increase in taxes in all categories and for all branches of government, since the government is short on cash, keeping your home will get even more difficult. Property taxes alone are out of hand, used primarily in rural and suburban areas to pay government workers’ salaries. In cities to pay for government waste.
Repossessed homes, the process of home repossession can be avoided in some cases by tightening your belt and purchasing only the essentials. Cut your household expenditure by as much as possible. Make do with what you already have instead of yearning for more. Use your credit card wisely. And try to get as much use out of your old car as you can.