The Foreclosure Consequences
Foreclosure consequences are grave and comprehensive. Previously when foreclosures were confined within the boundaries of the playing field of the borrower and the lender it did not impact on the wide socio economic scene. But all that changed with the debut of the foreclosure crisis around 2007 when like a virus it spread across the nation and slowly spread out to touch corners of the globe.
Topping the list of foreclosure consequences are the borrowers thrown out of houses that were their homes bag and baggage. Left with hardly any cash the evictees try working it out living with friends and relations but even when life in the car fails to meet basic needs the final end of the road is homeless shelters. Even these are cramped and so many are living in tent camps running along rail tracks.
One of the victims of foreclosure consequences are the children uprooted from schools and familiar surroundings. Abandoned pets come under the list of foreclosure consequences.
Moving from the personal foreclosure consequences on to more general ones are the blight of vacant houses dotting the landscape. These draw crime and criminals like magnets. The stagnant pools breed disease while overgrown gardens lead to proliferation of rats, snakes and termites. All these combined bring down the price of other houses in the neighbourhood that has not been foreclosed upon. Fires break out adding to the sense of insecurity.
Another of the foreclosure consequences is the dwindling of revenue for the government as there is hardly any real estate sale transaction. Cities and counties are reeling under budget deficits at a time when the police force and fire fighters have extra jobs to handle.
The courts are overwhelmed with work and trying to hire extra hands to handle the pile up of foreclosure cases. But funds cannot be found.
With flow of mortgage money drying up the banks is in a precarious position. Many have collapsed and more are falling. The government is trying to bail them out but not all can be saved. It is only the old fashioned banks that are not included in the foreclosure consequences.
An impoverished population cannot buy consumer goods made in Asia and this has led to factories closing down in China. China had invested money in securities in USA only to find that these are toxic and sour.
Recession has set in inside USA and touching Europe. Already there is talk that the dollar should be replaced as the world currency.
The greatest foreclosure consequence is a disgruntled population that is worrying the politicians. Once more the next generation however is learning the good old values of saving and thrift.