The GOP presidential candidates were in Arizona yesterday for a debate and they took on some issues including foreclosure.
Arizona has been plagued with unemployment and consequently has the highest foreclosure rate in the country. Many of these homeowners utilize foreclosure lawyers to keep their homes, but others look to federal programs for help.
But GOP candidate Mitt Romney’s solution for the current housing crisis is to let foreclosures “hit the bottom.” Romney told the advisory board of the Las Vegas Review Journal that by allowing foreclosures to proceed unhindered, investors could come in and purchase the homes and turn them into rental properties.
Some members of the Democratic Party attacked this notion, saying Romney was out of touch with the middle class.
Since last fall, foreclosures have been seriously delayed by federal investigations. However, in the third quarter of this year, banks have begun to move on delinquent homeowners ending the lull. Foreclosure lawyers may be helpful for some of these homeowners.
The large number of foreclosed homes on the market not only affects the person who lost their home, but also affects adjacent homes. Foreclosures have caused the value of other homes to drop and now many of these people owe more to the banks than their homes are worth. The inordinate numbers of homes, not saved by a foreclosure attorney, entering the market are often sold at a discount to buyers and thus drive down property values for everyone.
