Foreclosed Properties Data Articles

As foreclosures continue to burden communities across the U.S., the nationwide unemployment rate reached its highest level of 6.7 percent in November. According to the Labor Department, there are already 10.3 million unemployed Americans, a couple of millions more than New York City’s population.

In November, employers cut 533,000 jobs, the highest number since 1974, as recession resulted from the subprime credit crisis in 2007 that also gave rise to the flood of foreclosed properties across the nation.

Economists, including Richard Yamarone of Argus Research in New York, predicted that the unemployment rate could surpass 8 percent in 2009. Just this week, major companies have announced job cuts, such as General Motors Corp. and Legg Mason Inc. Telecommunications giant AT&T has already announced its massive layoff of 12,000 workers.

Mortgage foreclosures have reached their highest level during the third quarter, according to the Mortgage Bankers Association. The association also expects that a total of 2.2 million homeowners will face foreclosure proceedings before the year ends.

With a job loss of 370,000 in November, the service industry had the biggest loss, accounting for 67 percent of the total job loss during the month. Manufacturing companies lost 85,000 while the construction industry lost 82,000 jobs.

Canada also cut nearly 71,000 jobs during the month of November, the highest loss in 26 years. The U.S. recession that resulted from the subprime credit crisis has adversely affected other countries’ economies, including its northern neighbor.

Intensely concerned about the nation’s unemployment and foreclosure problems, President-elect Barack Obama has promised to focus on the revival of the economy upon his assumption of the presidency in January 2009. It is expected that his economic stimulus plan will use not only the second half of the $700 billion foreclosure prevention package that was approved by Congress in October 2008, but also additional funding for unconventional strategies to revive the economy.

The number of foreclosures continued to rise in New Jersey towns, counties and cities. Paterson registered the worst in the area with a high 10 percent foreclosure rate, which is considered very high according to national levels. 2,246 foreclosed properties have already been registered in this city this year, which accounts to 35 percent of the total foreclosures in New Jersey.

In neighborhoods, several vacant homes line the streets, abandoned, boarded up and locked down. The presence of foreclosed homes in the area has caused home values to drop considerably, making it difficult for remaining residents to sell their homes. These residents are fearing the danger that these abandoned homes are bringing to the neighborhood, as these houses are slowly becoming a haven for crime, drug addiction, prostitution, wild parties and fights.

Some of these foreclosed homes have been ransacked by thieves and vandals, removing all remaining valuable items from the home: from wires, pipes and metal fixtures to built-in appliances like furnaces and air conditioners. This scenario is causing a lot of worries to the community and the city officials.

Under the Housing and Recovery Act of 2008, funds will be allocated to the U.S. Department of Housing and Urban Development to be used for the Neighborhood Stabilization Program. The program aims to assist state and local governments deal with the problems associated with foreclosed properties. The funds will be used to purchase or rehabilitate foreclosed properties in hard-hit areas and be sold later as affordable housing to low-income families.

$5.1 million is allocated to New Jersey, with another $12.5 million as shared funds for Newark, Paterson, Jersey City, Union and Bergen. The city of Paterson will receive $2.2 million which will be used to purchase at least 10 properties for rehab.

Final plans should be submitted to the U.S. Department of Housing and Urban Development, and should be implemented within the next 18 months. The amount may be small, but it is a concrete step towards the right direction.