In this article, we focus on impact of being rejected for a loan modification denial on the potential to transform tax payers who are productive members of society, into disempowered people who add to a growing unemployment figure that places an increasing strain on an already stressed and fractured economy.
Homeowners who find it impossible to cope with their mortgage obligations or those who find themselves pouring money into a home which is valued significantly lower than the size of the associated loan (in other words, underwater homeowners) are often tempted to just walk away from what can feel like a very toxic situation specially when their lenders are not willing to help by extending to them a loan modification. In these kinds of circumstances, it’s all too easy for these struggling individuals to default on other payments to various businesses and creditors as well. This leads to a secondary tier of negative consequences, an increase in bankruptcy cases, and the resultant strain on many businesses can also become unbearable.
As these pkv domino qq go under along with the debtors who have defaulted on them, even purchasing basic items such as food and shelter can become an alarmingly difficult thing to accomplish. Things that were previously deemed to be important, such as car and medical insurance, suddenly become far more irrelevant as the main focus shifts toward identifying strategies for ensuring the basic survival and well-being of individuals and/or families.
Of course, the fact that insurance payments of various kinds are no longer being made does not mean that unforeseen calamities suddenly no longer occur. When disaster does strike and the relevant insurance cover is no longer present, those who are directly affected become even more dependent on the government for support and assistance (look at the growing number of unemployment insurance, welfare, food stamps, etc). It amounts to an ever-growing degree of powerlessness that severely inhibits the ability to live a meaningful, independent and rewarding life.
It is not unheard of that people who find themselves in this kind of hopeless situation resort to desperate measures which include criminal activities in an attempt to keep food on the table and a roof overhead. Criminal activity leads to arrest and prosecution; police and law resources are increasingly drained, and the strain on state and federal resources continues to escalate. When one considers the taxes that could have been funneled into federal coffers that have instead been replaced by huge costs on both a local and national level, it’s easy to see why the overall situation becomes highly damaging to all concerned over time as similar cases continue to pile up. The average annual cost of one prison inmate can easily amount to $30,000 to $45,000. Bearing in mind the sheer magnitude of prison populations throughout the country, it’s no surprise that the costs involved are nothing short of staggering.
Now just contrast that bleak picture with what the alternative could be if homeowners are given a real chance to save their home through a sustainable and affordable home loan modification also known as mortgage modification. It means that you have many more people who are able to hold on to their jobs, who are able to make adequate preparations in safeguarding themselves and their families against accidents and misfortune. Consider the revenue lost in the form of taxes and consistent mortgage payments. Consider the revenue lost in terms of the decrease in consumer spending, the effect of crime, and the escalated demand for welfare.