Three reports from the Center for Community Capital conclude that job and income losses are driving today's foreclosures, and suggest solutions.
The first wave of foreclosures were mostly the result of bad mortgage products and policy, according to the Center. Since the first quarter of 2009, however, the driving factors have been the loss of jobs and income.
The Center concludes, "In the long run, foreclosures that result because borrowers lose their jobs require new solutions that focus on the underlying issues of unemployment, such as the Hardest Hit Fund, and are flexible and targeted.
"By contrast, in the short run, until real job recovery is set in motion, revisiting the desirability of bankruptcy reform to allow for loan restructuring holds promise."
Vermont's foreclosure rate — and VHFA's in particular — are considerably lower than the national average. ("VHFA home loan delinquencies, foreclosures low," October 13, 2010)
The Center for Community Capital at the University of North Carolina is a center for research and policy analysis on the transformative power of capital on households and communities in the United States.