The GOP presidential candidates were in Arizona yesterday
for a debate and they took on some issues including foreclosure.
Arizona has been plagued with unemployment and consequently
has the highest foreclosure rate in the country. Many of these homeowners
utilize foreclosure lawyers to keep
their homes, but others look to federal programs for help.
But GOP candidate Mitt Romney’s solution for the current
housing crisis is to let foreclosures “hit the bottom.” Romney told the advisory board of the Las
Vegas Review Journal that by allowing foreclosures to proceed unhindered,
investors could come in and purchase the homes and turn them into rental
Some members of the Democratic Party attacked this notion,
saying Romney was out of touch with the middle class.
Since last fall, foreclosures have been seriously delayed by
federal investigations. However, in the third quarter of this year, banks have
begun to move on delinquent homeowners ending the lull. Foreclosure lawyers may be helpful for some of these homeowners.
The large number of foreclosed homes on the market not only
affects the person who lost their home, but also affects adjacent homes.
Foreclosures have caused the value of other homes to drop and now many of these
people owe more to the banks than their homes are worth. The inordinate numbers
of homes, not saved by a foreclosure attorney, entering the market are often
sold at a discount to buyers and thus drive down property values for everyone.