Just One Paycheck Away From Foreclosure

By far the most frequent reason for missing mortgage payments is loss of income. Whether the loss of income be the result of losing a job as a result of corporate downsizing or yet another effect of our current real estate crisis, the bottom line is the same: reduced income = missed mortgage payments.

Many jobs have been lost in businesses affected by the current real estate crisis such as title companies, mortgage companies, and of course the construction industry. These are lost jobs and displaced workers are finding it near impossible to find replacement work.

Without income, the chances of being able to reinstate a mortgage are nil. Whether the homeowner is forced to vacate their home due to short sale or auction the bottom line is that families are being forced out in the streets.

Where will these people go?

Inevitably, the displaced homeowners will turn to Community Services for the basic needs of food and shelter.

Unfortunately, community or social services always seem to be short of funds and often bear the brunt of budget cuts. For example, in Pinellas County, the waiting list for subsidized housing is months long and food stamps are often slow getting to the recipient.

Yvonne, a single mother of two, sold her furniture and her car to pay the electric bill and to feed her children. She has nothing left to sell and no place to go when her home goes to auction in a few weeks.

We can certainly expect the number of homeless men, women & children to rise dramatically while the politicians continue to do very little to ease the crisis and lenders continue to be driven by greed.