Landslide of foreclosures
NY Times reported that in 1995 there were 2,500 foreclosed homes, last year there were 15,000.
Experts and oficials blame the rise to a poor housing market, weak economy, and subprime loans with high interest rates that people can't afford. In Ohio, there are more than 200 vacant homes in Euclid, a suburb of Cleveland. Officials are trying to maintain the vacant homes while they are vacant to prevent the home values from going down, as well as the value's of other homes in the neighborhood.
In Washinton, politicians are taking a closer look to address the growing issue, '"What we're looking at is a tsunami of foreclosures that is on the horizon," Sen. Robert Menendez, D-N.J., declared at a hearing of the Senate Banking Committee," the Associated Press reported. The article also spoke about some of the presidential candidates, Clinton and Obama and their takes on how the issue needs to be addressed.
Here in the Minneapolis, foreclosure rates are on the rise as well. Recently, Mayor RT Rybak included 311 phone system to provide residents who may be struggling to pay their mortgages. The program is supposed to provide home owners with resources to help prevent their homes from foreclosing. Rybak said the sooner someone calls, the better the chances are that the operator would be able to get them help and to the right people.