Foreclosures are having a disastrous impact on our large cities. Many of us have heard how they have decimated Detroit. Yet it is hard to picture how bad the problem is by just reading about it and not actually seeing firsthand what is happening.
When the problem strikes closer to home, then we can really see how devastating foreclosures are. We really begin to understand that foreclosures impact not only those who have had to vacate their homes but also those who continue to live in the area, adjacent neighborhoods and the city itself.
I live in a suburb of Chicago. I have seen how in different areas of Chicago where there are quite a few foreclosures
Everyone Loses
Let me tell you what has happened in Chicago.
- 1/3 of the single family homes foreclosed on in the last 3 years were unsold at the end of 2008.
- The people who continued to live in the areas where these homes are have had to deal with boarded up and unsafe homes.
- Those homes that do sell sell for 30% less than what was owed on their mortgages. The investors who put up the money for these mortgages took a big loss.
- People who continue to live in areas with a large number of foreclosed homes have found that they cannot afford to move. The values of their own homes have dropped so much because of the foreclosures in their area that they cannot get enough for them.
- Neighbors try to band together, pick up garbage and keep the areas around these homes presentable. Frequently it’s a losing battle.
- Many of the foreclosed homes that do sell are bought by investors. Rather than repairing and renting them the investors keep them boarded up. They plan to hang onto them only until the real estate market comes back and sell them at that point.
- People looking to buy a home avoid looking at homes for sale in these neighborhoods because they fear what may happen to them.
It Just Does Not Make Sense.
We now have blighted areas which will remain that way for years to come. Everyone has lost. The homeowner who was foreclosed, the investor on the mortgage, the people still living in the neighborhood, the adjacent neighborhoods and the city itself.
I wonder how many of the mortgage companies really tried to help the original owners save their homes from foreclosure. Wouldn’t helping them do this have been better than what has happened?
It’s unfortunate but the mortgage companies will never be held accountable for the problems they have helped create.
If you are facing foreclosure, my heart aches for you. I know the struggle you will have trying to save your home. I want you to know that saving your home is worth it. Your family will appreciate it. Your neighbors will appreciate it. Your city or town will appreciate it.
Don’t try to do all the work yourself. You will get both frustrated and discouraged. Get help as quickly as you can. Hire a lawyer or an expert in loan modification. Also learn as much as you can about the steps you can take to save your home. You might want to check out my EBook. You can find more about it by clicking Stop Foreclosure.
Much Success,
Mark Elkins
