We all know that there is a housing crisis. We all know that people across the nation are facing foreclosures. And we keep hearing that the government is doing everything possible to mitigate the problem. But reports about foreclosure rates in the first quarter of this year seem to indicate that the government’s efforts aren’t enough to stop foreclosures from happening.
The government has recently approved $15 million in funds intended as foreclosure aid, a situation which has caused significant battling amongst states which all say that they’ve been hit the hardest by the foreclosure problem. The money, which is in the form of both grants and loans, will be used by state governments to purchase the homes foreclosing in their areas.
But are these measures coming too late? Many areas (including the city of Pittsburgh and the state of Massachusetts) are reporting record highs in terms of recent foreclosure rates, a situation which suggests that the problem may be out of control. More importantly, when reviewing the petitions for foreclosure in Massachusetts, we can see that the worst of the problem is still to come.
And it’s not just lower-income families that are impacted by this problem (although they do bear the worst of the burden). Affluent families are also beginning to find it difficult to make payments on their homes as the economy shifts downward, resulting in the foreclosure of much more expensive homes than in the past. Those people who are starting to feel the crunch may need to begin reviewing their finance options before it’s too late.