The U.S. Housing Market and Election Day 2012

by on General

Presidential Election 2012

When it comes to the upcoming presidential election, there have been a variety of hot topics ranging from education (including rising college tuition) to the health care reform. As expected, each of the presidential candidates have their own views on each of these issues, but where, exactly, do they stand when it comes to the real estate market – specifically foreclosures?

Why should the Presidential Candidates Care?

Real estate market recovery is occurring; however, the speed of that recovery could actually be influenced by whoever is in the White House over the next four years. This recovery process will not happen overnight and it will take real, solid leadership to ensure progress occurs as quickly as possible.

In order to get a better understanding of how some states are still struggling when it comes to foreclosure and the real estate market, let's take a look at Illinois and New Jersey.

The Illinois Real Estate Market

Illinois currently has the highest foreclosures throughout the entire country. There are several reasons for the high foreclosure rate including the fact that Illinois is a judicial foreclosure state; therefore, every single foreclosure filing must appear before a judge. As a result, judicial foreclosure states are recovering from the real estate market crash a lot slower than non-judicial states.

To put it into simpler terms, Illinois is still dealing with a backlog of foreclosures due to the slow process of having to take every single foreclosure case before a judge. Therefore, they are still unable to see recovery like many other states (most of which have non-judicial foreclosure processes).

Couple the judicial foreclosure process with a high unemployment rate and Illinois is definitely one of the states having the hardest time moving forward.

The New Jersey Real Estate Market

Like Illinois, New Jersey also has a judicial foreclosure process in place; therefore, the state is still struggling to process foreclosures through the system, slowing their ability to make progress toward recovery.

In fact, the number of homes with delinquent mortgage payments increased 1.3% over the last year in New Jersey to a staggering 12.7%.

When it comes to the upcoming presidential race, homeowners in states with a high delinquency rate and struggling real estate markets – like Illinois and New Jersey – are looking to presidential candidates to see what can and will be done if elected.

What are Candidates are saying about Foreclosures?

Unfortunately, neither candidate has really made addressing foreclosures and the real estate market a primary concern.

Obama is committed to continuing to offer mortgage relief while imposing regulations on lenders in an effort to hold them accountable.

On the other hand, Romney has said very little about the real estate market with the exception of pushing for a removal of government intervention.

Maybe these candidates will create more substantial plan and/or flesh out their current plans before the debates begin; however, as of now most people involved in real estate are unsatisfied with the lack of attention the current real estate market and foreclosures are getting despite their direct effect on just about everyone in the country.