Virginia Foreclosures Has Damaging Consequences

14 February 2008

Author: admin Posted under Foreclosure homes

The good news is that investors can find some of the best deals in the form of Virginia foreclosures and the number of Virginia foreclosure homes in on the rise. Most of the housing advocates across Virginia are bracing themselves for the new wave of real estate foreclosures that might start showing its ugly face in 2008.

With more and more homeowners defaulting on the adjustable-rate mortgage loans, there doesn’t seem to be too much of home. Most of the bank foreclosures in the state have resulted due to subprime ARMs, and loans that offer an interest rate that is way above the market rate for homeowners who already have a poor credit rating. The one solution that many foreclosure analysts see is a federal freeze on these highly spiked up interest rates on some of the subprime ARMs.

There has been news of rising number of real estate foreclosures from different parts of the state including Richmond, Arlington, Suffolk, Roanoke, Norfolk, and Staunton. To fight this alarming situation, a special committee appointed by the governor Timothy M. Kaine has met to plan out various ways of preventing or avoiding the increase in the number of foreclosure homes in the state. The main aim is to preserve and protect homeownership in the state of Virginia.

Jay Speer of Foreclosure Prevention Task Force said, “We view this as a huge crisis because people losing their homes are a disaster.” According to him Virginia foreclosures is not only destroying homes and families but also neighborhoods. He also believes that one of the primary reasons behind the increase in the number of Virginia foreclosure homes is due to fraudulent re-financing schemes where the loans that were sold to people were of no use to them.

The number of bank foreclosures in Virginia might hit the 20,000 mark in 2008 and needs to be stopped now or it might do more damage to the economy of the state.

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