Foreclosures Causing Homelessness, Illness and Spate in Crime in USA

October 15th, 2008 | Tags: Foreclosure Crisis

The future of America is mortgaged thanks to the housing crisis of today. Foreclosures are the prime cause for homelessness, illness and increase in crime. The sheer volume of the debt of the country – national debt, consumer debt and war debt, is staggering and well beyond anybody’s vision. Americans always lived under the halo of having put the first man on the moon. It is beyond their basic comprehension and grasp to understand the social and economic collapse of Uncle Sam. But it is happening.

There was a time when the elders recalled frequent incidents of stones being thrown at shops when police vehicles passed by so that the culprits would be arrested. Jail meant sure square meals and shelter from winter snows. It seems many will resort to the same tactics in these foreclosure days if something is not done swiftly and effectively.

Against this foreclosure background the presidential candidates are gearing up for the big show in November. But the headlines are also dominated by foreclosures, unemployment and war. Many are trying to believe that the worst is over when the focus is on the foreclosure issue. One pundit opines that there are going to be two more surges of foreclosure tides and economic storms. Patrick Newport of Global Insight opined that the next attack would come and stay for few more months. This will cause further unemployment. Reacting to Newport many say that although some mortgages are worth less than mouldy wallpaper, some still have value.

There are however many external factors that play around market stability. The domino effect seems to rule. This means when one house goes into foreclosure it drags down all the other neighbouring houses. It has a disastrous effect on those trying to meet mortgage commitments. It often leads to abandonment of property next to the foreclosed ones. With the loan amount being higher than the property worth the house owners feel it is no longer worth struggling for. So they just walk away.

To most Americans the dream of owning a house has become a nightmare. With jobs gone it is no longer possible to pay mortgages for overvalued houses. This leads to mud slinging within the family with one blaming the other. Leaving houses families become shelterless. Crime soon follows as one is faced with the basic question of survival. Meanwhile the vacant houses become dens for criminals and disease alike.