Home Foreclosures By State: Factors That Determine The Trend

The numbers showing the rise or, in rare cases

, the decline of home foreclosures by state in the U.S. are not determined by just homeowners failing to pay their mortgages. There are a lot of factors that real estate market experts have identified which contribute to the housing market trend in the country.Loan delinquencyThe inability of most homeowners to pay their home loans in time is equal to the first step taken towards foreclosure. Once a homeowner fails to pay the home loan, that amount will be added to the next due date, with interests and other charges added up.This creates a bigger problem come next due date. Before anyone notices, the charges and fees are piling up, making it even more difficult to pay the dues. Most homeowners think that missing one due date is manageable, but as extra charges file up, the problem of paying becomes even more difficult.Unemployment levelsThe high rate of unemployment in the country is one factor that creates a heavy burden on homeowners' ability to pay their bills. Lack of jobs means less income; less income creates a weak consumer market; which in turn creates less profit for businesses.The chain reaction eventually leads to increased home foreclosures by state levels and poor economic status nationwide. This creates a cycle that affects homeowners, families, businesses and individuals.Poor national economic conditionsThe way the federal government manages the national economy, government debt and every single statistic that has something to do with the economy all affect the dollar rate and the prices of commercial goods.A poor economic condition creates a more expensive market for consumers, which directly affects their spending and takes a direct toll on their finances. The money that should have been used to pay for homeowners' house loans are instead used to accommodate basic necessities like food, clothing and education.The continuous rise of home foreclosures by state is expected to remain so until all of these factors are taken under control and more manageable levels are achieved. Home buyers should never get into a mortgage agreement that they cannot afford in the first place to avoid starting a chain reaction that affects individuals and the whole national economy.

by: Joseph B. Smith

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