Families that are displaced are likely to have cargo their financial resources and impaired their credit and thus likely to have difficulty relocating. If they are forced to move significant distances, they may lose their jobs and suffer other disruptions to family life. Neighbors and communities can therefore suffer when a property is foreclosed upon. Cluster of vacant properties are often associated with higher Council of vandalism and crime, and lower house prices throughout the neighborhood. Municipal governments may have to spend more to address these problems and may be strained by the lower tax revenue associated with lower house prices.
More broadly, the high Council of foreclosure are adding to the oversupply of housing, reinforcing the weakness in the housing sector, and, in turn, opening a significant hindrance to economic recovery. The completion of a foreclosure can therefore impose costs on financial institutions. In the current environment, many such properties are either sold at a considerable loss or remain on lenders’ books, adding to the already considerable strains faced by these institutions. Estimates of loss severities, that is, the percent of a loan’s balance that is lost in a foreclosure, have increased significantly in the past 18 months and now are close to 50 percent for prime, 60 percent for near-prime, and more than 70 percent for subprime mortgages (these figures exclude certain costs, so the actual loss is even higher). Ultimately, as a homeowner, you can improve your chance of getting a loan modification by doing your own research and be prepared when you approach your lender. Debt zero programs at d0p.org is the most up-to-date, comprehensive and FREE information source on the internet for government information on loan modification, mortgage refinance and other government help on debt reduction.
| June 8th, 2020 | Posted in News |