For those wondering when the foreclosure crisis will begin to subside, the answer is “Not until the unemployment crisis subsides.” An article in today’s St. Petersburg Times reports that unemployment in the Tampa Bay area is at 12.3%. Until something is done to address the spiraling unemployment, people will continue to fall behind on their mortgages and the problem will only get worse.
November’s rate is the highest posted in Florida since May 1975, when unemployment peaked at 11.9 percent. Several economists predict the state will break the 12 percent mark early next year before gradually retreating.
I’ve got a solution. The federal government has thrown billions of dollars at the banks and lenders that caused the crisis we find ourselves in. Anyone who has had to deal with these companies to try and get a modification, short sale or deed in lieu recognizes just how impossible it is to deal with these companies or to actually even get a live person on the phone. There is a direct correlation in geography between high unemployment and high numbers of foreclosures. How’s about we force the lenders who are taking federal money (OUR MONEY) to hire people (Americans No Indians Need Apply) to work on short sales/deed in lieu/modifications with the people in their communities. I”m furious about a whole lot of things these days, but nothing makes me madder than when my client who has lost his job is having to explain himself or ask for some understanding and assistance from some foreign-sounding person.
Jobs here people. Jobs here.