Reuters reported that many Americans are preparing themselves for the next foreclosure wave, even though end of the housing crisis was thought to be near. Just when many Americans thought things were looking up from the sales of homes that have been increasing and the new-found responsibility of bankers in lending money, they really may be set to face the worst yet. Foreclosure rates have jumped 28% just since January.
“We are right back where we were two years ago. I would put money on 2012 being a bigger year for foreclosures than 2010,” said Mark Seifert, executive director of Empowering & Strengthening Ohio’s People.
Unlike the earlier housing crisis where borrowers were faced with the high interest rates, they are now finding themselves with ordinary mortgages but without the ability to pay them because of the economic status and hard times.
Reuters spoke with a few who are trying to embrace the fact that they soon may be homeless. 52-year-old Daniel Burns was let go in December of 2010 because of the slowing of his family business. Unable to cover his mortgage, Burns received a grant from a government fund using money repaid from the 2008 bank bailout. However, Burns is hoping to hear from his employer soon about returning to work with the turning around of the economy, especially because his grant is due to expire in 2013, along with his unemployment benefits said to be cut off next April.
Burns is not the only one finding it hard to play catch up in these difficult economic times. First was the loss of his job that put him in jeopardy to be able to pay his mortgage, and he is still finding it impossible to recover from that. The housing crisis years ago has led and will continue to create more crises for many. After a recent protest at a Chase branch in Cleveland, ESOP’s Seifert commented “Until banks engage in meaningful principal reduction as a matter of course,this crisis will not end.” Read the full story from Reuters here.