Foreclosed Houses

There is no doubt about it and the facts support the evidence that once foreclosed houses begin to happen at an accelerated rate, the local economy will follow suit quite rapidly thus making the spiral increase in intensity and speed. Granted you will notice it more in smaller towns that you will in the larger metropolis areas because there may only be one or two banks in a smaller town and when they start to hurt, it literally takes no time at all for the local businesses to feel the pinch.

Let’s be a little more specific. Let’s say the foreclosed houses in the area have reached the point that the rest of the country average is at. The bank will now have more real estate on hand than it has cash so when your local retail store needs to get a loan to purchase items for the upcoming Christmas season they are told there is no credit available, not because the retailer is at fault, there just is no credit. The retailer in turn will have to let its employees go because they won’t have inventory so they won’t need employees. Those employees now have to save every penny they have to make ends meet so they no longer shop except for food and so the other stores in the town are hit hard and can’t stay in business so they close and there are more folks without work. The bank keeps foreclosing and soon they have no operating capitol and they go belly up.

This can skyrocket so fast that literally within weeks and entire town can be brought to its knees simply because the foreclosed homes rate has risen. The example may seem extreme to you but it is happening just like this all over the country. Look at the rate of failing businesses and banks and the foreclosure rates and number of foreclosed houses increasing by the day if you doubt the validity of the statement.

Thankfully things are usually caught quickly and the Federal government steps in before it gets to this stage but at the current rate of foreclosure in the United States, there will soon be many more foreclosed houses than there are privately owned homes with legitimate mortgages on them.

This is not being stated to scare you, it is being stated to warn you that unless we are taking positive action to help curb the rising rate of foreclosed houses and to help our own finances and that of our neighbors and the town in which we live, there is a terrible fate in store for us that we do not want to face and in reality don’t have to if we all take a stand and begin working towards a solution while there is time to make it. There is need to be concerned about the future but if we act now we can avoid the need to panic.

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