For the past few years, home values have struggled to increase. At the same time, the number of foreclosures have continued to climb. A lot of the economist thought we were finally out of the housing recession and would soon see home values rise again – creating more equity for homeowners. That doesn’t seen to be the case now with economist saying a “double dip” is on the horizon for home values and with a large number of Americans still falling behind on their mortgages.
You see, when Americans foreclose on their homes, it can effect other homes in the area. Some foreclosures are left in great shape and keep their value. While some foreclosed homes can be boarded up, grass left uncut for months, trash left in the yards and other issues. This creates eyesores in neighborhoods that influence new home buyers to not to purchase their new home in that area – they’ll look elsewhere for a home. Elizabeth Weintraub of About.com says “Although some studies show that neighborhoods with strong foreclosure numbers see a rough drop of 1% in value, it’s not always due to sold value of the property. Often falling prices are due to buyers’ perception of the area, followed by a refusal to live in such neighborhoods, coupled with the previous owner’s extreme neglect of the property.”
When Americans see friends, family or anyone we know struggling to make their mortgage payments, we should do what we can to help them. We can’t sit around and depend on our government to help us or anyone else. (in a recent survey, 45% of American adults feel the government is not doing enough to help prevent foreclosures)
Helping others avoid the foreclosure process can help each and every one of us by maintaining our home values in neighborhoods across the country. However, having a good piece of mind knowing we helped someone during tough times might be more important than preserving the value of a home.
