What are the effects of foreclosure in US?

Answer 1

The main effects of foreclosure was once a singular problem but not until done in a large scale mass quantity has anyone realized the impact. It's a classic case losers and winners.

Consumer Aspect:

On the consumer foreclosed upon it means loss of property, and added personal property no pertaining to the home. It also mean a financial bad mark or record that may deny future options in living arrangements, and even work as both require a background check about 80% pertain to one's credit history an individual may suffer this 7 years or more.

Banks & Reinvestment -

The banks garner the property for resale, drawing new loans, bending the state or seizure if resident removes personal property or unable then some time's the bank also wins disposal as they see fit of the previous owner's property - includes anything that may be in the home of any value.......of personal ownership- One an eviction happens - there are three principals the homeowner can file bankruptcy and discharge the debt this leaves free clear access for banks to resale.

(note: foreclose home clean-up contracts if items are of value they will seize and sell off but not apply towards the expense of the home owners debt it will be as payment for item removal even if high profit is made!)

Government-

Many are forced to provide advocate and consumer assistance - but foreclosure also impacts municipals as long as a home is held in out standing many other things go wrong - property values declined, property taxes and values also decline. The spiral become economic.

Drawbacks-

Various new laws and enactment has recently come under scrutiny as towards the foreclosure and housing bubble of 2006-2012. That may potential be felt another year into 2013 as the first foreclosed upon come out of a seven-year financial recovery of these records. With gradual watches in a new emerging recession spurred by this joblessness.

Economic Bite Back

The potential in mass proportions it has enabled release and of most homes from ownership and degraded property values enabling new wave of first time buyers that couldn't afford home ownership. Yet due weakening market and other fears home buying still remains extremely slow as most newer homes built in 7 to 5 years that were vacant have been torn down never lived in....

This would be considered an economic bite back as previous expected GDP in building, taxes and revenues/investments by the bank and other developers. Most will not see break-even loses via the declined housing values, and the lower interest rates if these homes do sell. Many new buyers will not engage or invest more readily into the banks per previous exposure of actions will never garner previous housing loan market share sales again for short -and or long-term loan expansions again.

The consumer confidence has been essentially lost. As many banks and investor are hoping for futures and long term gains in new buyers and investors upon expanded loan and consumer credit programs. Most will not engage in these activities till a whole new generation transpire such as the 1928 recession - recovery boom after the war 1945 as the 1950's saw the greatest economic boom for the U.S.

Answer 2

Foreclosure in the US has several negative effects. It can result in the loss of a home for the homeowner, leading to financial and emotional stress. Foreclosed properties can lower surrounding property values, affecting the overall real estate market. Additionally, communities may experience increased crime rates and decreased property tax revenues due to vacant, neglected properties.