Foreclosed Homes in Alabama

Alabama’s foreclosure figures do not make as grim reading as elsewhere in the country but that is not to say they have escaped the foreclosure crisis. Although the State is the 39th hardest hit nationwide, according to a recent survey, and problems are certainly not as dire as Nevada and Las Vegas (who have been the worst affected for twenty-two straight months now) but residents in the local towns and cities are certainly seeing the effects on the ground.

In pleasant neighbourhoods across the State there will be an abandoned house or two with an overgrown lawn and broken fence, possibly with smashed windows – the vivid effects of foreclosure. Across Alabama, the Police department have had to increase patrols in areas particularly badly affected by foreclosures. Once properties become run down, they seem to spiral very quickly, either by bored kids vandalising the houses or by squatters moving in. All of these issues do not help to sell the house, at what is a very difficult economic time.

Unemployment figures are also supporting evidence to show that this crisis is not over yet, in fact it may not have reached its peak. The State unemployment rate has risen to the highest levels since 2004 and sits at 5.4%, which is below the national average of 6.5%. As jobs are lost, more people struggle to maintain their mortgage repayments.

There are various government initiatives on the wire in an attempt to ease the pain being felt by everyone during this recession. Alabama may be on the receiving end of a portion of the $45m government grant to assist, but this money is unlikely to deflect the drama of those undergoing the foreclosure process at the moment.

Lee County has announced a 45 day moratorium on homeowners going through the foreclosure process, but many say this is not going to keep people in their homes for Christmas, merely delay the recovery that is hoped for whenever it starts to come.

Lawyers are even feeling charitable and offering people in the Birmingham area free services in efforts to avoid foreclosures. These services may include making phones calls or writing letters on behalf of beleaguered residents. One of the many issues associated with foreclosure is the owners’ reluctance to contact the bank to discuss the problem and hopefully this initiative will prevent at least some people from having their home repossessed.

Real Estate companies are also trying to help, with some companies particularly targeting those who cannot maintain payments and working alongside them to offer better solutions for the future.