I'm not one that's been a huge fan of the recent government bailouts, but the affects growing numbers of foreclosures have on the rest of our society are working hard to sway my opinion.
I understand that approximately 1-2 out of every 10 Americans that bought a home during the housing boom shouldn't have been approved for those loans based on reasonable qualifications, which lead us to the point we're at now with the foreclosure rate rising (but that's just a leveling out of the market).
But what is causing concern for me is the affect these record foreclosure numbers will have on the rest of us who have been able to avoid the gloom and doom of the current situation. As selfish as it may sound, I feel something needs to be done to help those facing foreclosures, to help the rest of us.
Foreclosed properties can reduce property value in that neighborhood, which in turn can reduce the commission we make, which reduces what we spend in our daily transactions with other businesses, and then it affects that businesses revenue, and so on...it's a trickling affect.
Also, vacant foreclosed homes attract trouble. You have young kids or vandals looking at an empty home as an endless opportunity for fun/trouble. What they do to the property while having their "fun" can then affect the property's value as well, and possibly the property will sit there even longer.
As these families start to lose their homes, they are strapped for money, so they in turn will also stop spending money on certain products or services, which will more than likely lead to more unemployment and more foreclosures. It's a vicious cycle.
I don't have all the answers, and I understand a lot of this situation is of our own doing, but I think it's time I step back from my original view of bailouts and assess the adverse affects this will have on all of us if it continues.
I'm curious to hear from you guys as to what you think might could help our current situation. Hope things are going well for you all!
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