What comes after foreclosure

I strongly believe you have only touched the tip of the iceberg regarding the long term effects on the economy and families that has been caused by foreclosure and short sales. There is proof that the foreclosures and short sales have caused more divorces, suicides, and a lack of self esteem by traditional family providers, plus a significant effect on the children living at home. I don’t believe we fully understand the long term effects on children who have experienced the loss of their home, divorces, lack of respect for family providers who they may viewed as “failing”, and their loss of childhood friends and the embarrasement they had to endure.

I believe the government statistics are bogus. Individuals who have lost a home to foreclosure or had a “short sale” have severally damaged their credit. They need a credit rating to rent a home, to even get a job and certainly to buy a home. Our archaic credit laws will deprive the vast majority from actively participating in our economy and buying a new home for 7 years. Because they did not just lose their home, the also incurred other unpaid debts, and they have other debtors and this will be forced into the Cash Economy. We already have 47% of the population that does not pay federal and state taxes, and the addition of this large group of “foreclosed” homeowners will by necessity contribute to this nation wide problem. The effects of this Great Recession (stupid name) will effect this country and the economy for the next 20 – 30 years, just as the Great Depression changed they way American lived until after the end of the Second World War. We will see new auto sales suffer, home building suffer, savings rate decline, a loss in net worth of older families, more government assistance, and even a decline in the youth of our country attending colleges, because the primary savings vehicle (home ownership) for retirement and our children’s education has been destroyed.