During the real estate boom in the early 2000, companies believed in the Federal Reserve’s illusion of low interest rates and people were mesmerized by the same illusion of continuously increasing home prices. The illusion by the Federal Reserve then fueled investment in real estate and property but now everything has changed.
With increasing homes abandoned due to foreclosure, the neighborhoods more and more experience a degradation in public safety as abandoned homes become havens for crimes. According to a study by the advocacy group ACORN, areas where crime rose between 2006 and 2008 were areas that had high foreclosure rates. It is only common sense that foreclosure and crime go together. As homeowners left in foreclosure towns lose more and more of their neighbors who help keep an eye on each others safety, they face more an more risk living in their area. Often they see squatters in abandon homes and and in some areas drug dealing and rapes happening in empty buildings in their neighborhood.
All the crimes and risks due to foreclosure is just the beginning. Bank owned homes are used by formerly employed workers to stay off the streets. There are several community organization groups who break into foreclosed homes to put the former owners back into their former properties.
Although it is common sense that crime rates rise during any economic recession, it is predicted that today’s depression will be much worse than the country has ever experienced. Gerald Celente has even predicted that America will see a great increase in crimes and will experience food riots, tax riots and even kidnapping as it is now happening in underdeveloped countries. With the crime increasing in foreclosure towns, this is very much possible.
An enormous amount of money is being directed away from creating jobs by job-producing companies. The money should have probably gone to help bail out private corporations that are bankrupt to help people keep their jobs. This money went into the foreclosure prevention plan to help keep the mortgage interest rate low in the hopes that homeowners can afford to pay off their mortgage and prevent losing their homes. But without jobs, paying off anything no matter how low the interest rates are, is just not possible.
Now, unemployment rate in the US will remain high if not increasing. It is going to pass 10% and it is likely to cross 25%. More homes may be gone into foreclosure and crimes will also increase. People unable to have any income will become more and more desperate for food and shelter and other needs for their families. If you still have your homes, consider your own safety against home invasion and robberies. Abandoned homes may be a target for people who are looking for shelter and other valuable assets, but occupied property such as yours are full of food, cash and people to take advantage of. This is exactly what Gerald Celente has warned about.
As property tax revenue has fallen dramatically with the rising foreclosures and more empty homes, less and less people are employed as police officers or firemen. Homeowners will probably have to rely on their own abilities to survive in case of vandalism or even home invasion.
In places like Queen Creek, Arizona, (population 20,800), on Phoenix’s outer rim, there is one foreclosure for every 25 people. Parrish, Florida, (pop. 6,900), in the lakelands outside Tampa, and Perris, California, (pop. 53,600), south of Riverside, have 54 and 70 foreclosures per capita, respectively. Thanks to its large population, Indio’s concentration is only one foreclosure for every 153 citizens.
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