Washington Foreclosures Needs a Solution

27 February 2008

Author: admin Posted under Foreclosure homes

Washington being the seat of American Parliament seems to be in tatters where foreclosure activities are concerned. Off late there has been an eye raising number of Washington foreclosures, which was high enough to send the Bush administration panicking. Some of the worst affected cities include Newport, Spokane, Seattle, Vancouver, Bellevue and Everett.

As a reply to the high number of Washington foreclosure homes, the Treasury Department, the White House and HUD announced a new effort in the offing to save the homeowners who are at a risk of foreclosures. But this plan will only be applicable in Washington and not in any other state. The plan is yet to unfold its aims and how it will be implemented, what will be implemented and how will it benefit the distressed homeowner.

According to a recent study, it has been found out that the reason for such a high number of bank foreclosures is due to high interest rates on sub-prime mortgages and an even higher layoff rate. There are more people out there losing their jobs than ever before. In fact Sprint Nextel Corp. has announced that it will have to cut its employee strength by 4,000 in the first half of 2008 itself. Sprint Nextel has around 60,000 employees out of which 4,400 are based in Washington.

This is certainly not good for homeowners and the housing industry because Washington foreclosures have started to make a deeper impact on neighborhoods. The neighborhoods where homes are being foreclosed have lost their property values and there are less people buying in those neighborhoods. This means a more desolate look and a higher crime rate. The question is where does this all end?

With the new and renewed effort to avoid real estate foreclosures and to bring down the inflated rate of Washington foreclosure homes; it seems there might be something worth looking forward to finally in 2008.