subject: Foreclosures – Displacing Families, Breaking Homes [print this page] Foreclosures Displacing Families, Breaking Homes
One of the major causes of meltdown in the housing market is real property affordability. The unsustainable rise in real property values (peaking in 2005), price-to-rent ratios and higher mortgage rates led homeowners to bleed out of cash. And since most mortgage borrowers are, as a rule, financially vulnerable, any fluctuation in the value of property affects not just individual homeowners but the economy as a whole.
The latest turmoil in the economy of the U.S. had clearly shown some of the weakest links in the financial sector. It also shook the economic foundations of the U.S. and some countries around the world.
A "For Sale" sign in front of your neighbor's house may mean that they are relocating to another place and that a new neighbor is moving in. But to see a "For Sale" sign in front of almost every house in your neighborhood could mean a disaster. If your neighbors can no longer afford to stay in their homes, you have a good reason to be worried; you might be the next to leave your house tomorrow.
The scenario is all too common in Daytona Beach, Volusia County, Florida. As a coastal city with 64,211 residents, Daytona Beach is a haven for beach goers. It is also a city dotted by empty houses that serve as concrete evidence of the recent economic recession. There are real estate agents who are well guided in Daytona Beach foreclosures who keep interested buyers well informed. Hundreds of foreclosed houses are up for sale until now.
The trouble in the housing market has affected thousands of families. The problem has far- reaching effects in the economy of the U.S. and the rest of the world. Daytona Beach foreclosure cases are not isolated to this city in Volusia County. The burst of the housing bubble has affected every state in the country and left families homeless.
Daytona Beach foreclosures reflect the attitude of homeowners who behaved irresponsibly. The cases also mirror the image of predator lenders who earned huge amounts of money at the expense of middle-income homeowners. These recent events call for a more decisive action to reform the housing industry.
