Job Losses Blamed for Foreclosed Commercial Properties and Homes

by on Foreclosure Crisis

Supplies of foreclosed commercial properties and distressed residential properties continue to rise in most parts of North Carolina. For the current year, the number of foreclosures has reportedly risen by around 15% compared with previous periods, giving the impression that the recession is not yet over for the state.

Foreclosures in Fayetteville and in other areas like Scotland County and Lee County are even higher when compared with statewide figures. Scotland County had a 46% foreclosure rise, while Lee County's numbers are up by 42%. Moore, considered the richest county in the area, recorded a jump of 24% for the year.

According to housing industry analysts, the current year's increases in North Carolina foreclosures for sale have nothing to do with subprime mortgages anymore. Foreclosures related to these loans have already worked their way through the market early on, analysts stated. This year's figures are mostly attributed to unemployment and decline in household income.

Analysts further added that foreclosed commercial properties and distressed residential properties entering the market in 2010 are mostly associated with conventional loan mortgages owned by regular residents. Those who three or four years ago were very well qualified for mortgages are now facing trouble due to income reductions and furloughs imposed by their employers, analysts have explained.

People who are wondering how to find bank foreclosure homes are most likely to find answers in counties like Lee where unemployment rate has jumped to as much as 14% and has settled at 11% in September. The rate is higher than statewide unemployment levels, leading to more foreclosures in the county.

In response to the increased number of foreclosures caused by unemployment, the state has reportedly decided to launch a program aimed at helping troubled homeowners. The effort called Mortgage Protection Program will reportedly issue forgivable loans that will be used for housing expenses for a period of two years. The program will be supported by federal funds worth almost $200 million.

Several local agencies in the state are involved in the program and are offering information and counsel to state residents facing problems related to home foreclosures and foreclosed commercial properties. And unless the recession double dips, officials are optimistic that the program will be able to tidy over delinquent homeowners until the state can produce more jobs.