Many Americans Face Financial Hardship and Foreclosure During the Holidays

2011-11-29T20:46:00Z

ROUGH ECONOMIC WATERS HAVE LEFT MILLIONS OF AMERICANS FEELING STRANDED AND UNCERTAIN

THE SITUATION IS COMPLICATED AND THE STAKES ARE HIGH

Thanksgiving, Black Friday and the first shopping weekend of the season have come and gone and from all of the reports the retail industry received a positive start. All of the good news shows promise with an “up” day for the stock market. This is great news many positive things may rise from this positive uptick.

On Thanksgiving and throughout the weekend while reflecting on all of the things to be thankful for my thoughts were carried away to the 6.3 million homeowners that fine themselves in some stage of foreclosure and the 10.9 million or 22.5% of homeowners with mortgages that are upside down, owing more than their house is worth in today’s market.

We are at a crossroads not unlike the financial turmoil we experienced during the recessionary periods of the 1970’s and 1980’s. One can remember the long lines at the gas stations and the rationing of gas by odd or even ending numbers on license plates. We were in a period of continuing inflation, stagnant business activity, and the ever increasing unemployment. President Carter increased government spending to combat economic weakness and unemployment which were largely unsuccessful. The Federal Reserve Board clamped down on the money supply beginning in 1979 which resulted in rising interest rates, slower business and consumer spending and finally a deep recession. The economic unrest of the 1970’s had political consequences and the American people voted out Jimmy Carter limiting him to one term as president.

Enter Ronald Reagan for the next eight years as President of the United States but did this solve the financial problems overnight? No - Our country operated within a deep recession throughout 1982. Business bankruptcies rose 50 percent, farmers were hit hard as agricultural exports declined and crop prices fell. The harsh slowdown was felt by all but it broke the cycle of destruction that our economy was experiencing. By 1983 inflation declined and the economy was on the rebound. We, as a nation, began a period of economic growth and the annual inflation rate remained under 5% for most of the 1980’s and into the 1990’s. Although the country was on the right path the recovery was not without its problems. Some Savings and Loan banks made unwise loans after they were deregulated causing many to fail that cost the tax payer money to pay off the bank depositors. The 1980s oil glut was a serious surplus of crude oil caused by falling demand following the 1970s Energy Crisis. After 1980, reduced demand and overproduction produced a glut on the world market, causing a six-year-long decline in oil prices which caused a slowdown in the industry and many unemployed workers. And let us not forget “Black Monday” October 19, 1987, when the stock market dropped almost 23%.

The economy was finally showing signs of an increasingly healthy performance as we moved through the 1990’s and continued, more or less, until the Dot-com bubble burst, 911, the housing bubble burst, and finally the financial industry bail-out.

Now we find ourselves in a similar economic slow-down. Although inflation has not raised its ugly head to the extent that it did some thirty years ago, we have unemployment in excess of 9%, record foreclosures and debt delinquency.

I’ve provided this little history lesson to make a point. I lived through the 70’s and 80’s, experienced the ups and downs, and hopefully gained some insight. Most of the facts mentioned above are from the U.S. Department of State. Other information is what I remember of the time. I understand what individuals and families are experiencing today with loss of income, loss of employment, separation and divorce due to overwhelming financial distress, not knowing who to turn to for help, and all of the emotional baggage that we carry. I know what it's like to close a small business, layoff employees, file bankruptcy, and lose a home to foreclosure. It wasn’t fun for me then and it surely isn’t fun for anyone now. There is one big difference – Today there is bonafide help.

With everything said I am blessed with the insight and knowledge to be able to help families today that are experiencing financial hardship. As we enter 2012 we will encounter challenges. Will we be ready to meet those challenges and will our political leaders be up to the task? I believe the American people are up for the task and I believe that we will overcome any obstacle placed in our path. No matter what the people of this country have endured we have always been able to find solutions. We will take our lumps, move forward, and emerge victorious. We are NOT a lazy people!

My name is Frank Gillen and I’m a Realtor®, a Certified Distressed Property Expert trained to help homeowners find solutions to foreclosure. The Metro Denver Home Store Team at RE/MAX Unlimited, Inc. is dedicated to helping solve the housing crisis by helping homeowners find solutions.

Too often, the anxiety associated with missed mortgage payments and the fear of putting ones trust in the wrong hands, causes homeowners who are heading toward foreclosure to avoid seeking help or pursuing a short sale. The holiday season only exacerbates the stress and anxiety.

Realtors who have received the Certified Distressed Property Expert (CDPE) designation have proactively sought out the most respected and recognized designation for helping clients within the complicated and highly charged distressed property arena.

If you or someone you care about would like to change the course of a life that’s facing foreclosure, I get it and I can help.

Contact me today at 303-885-8447 or frank@metrodenverhomestore.com

Visit www.metrodenverhomeconnection.com for free reports. Just click on the “Resources” tab.

Metro Denver Home Store Connection

Many Americans Face Financial Hardship and Foreclosure During the Holidays