Wisconsin Foreclosure Homes
Dec 10, 2009 | Filed under Foreclosure Homes | Comments (0)
With an economy based, historically on farming in particular dairy farming, it is easy to begin to understand the root of Wisconsin’s economic problems in the current climate of uncertainty. Although the State has diversified over the past two decades into tourism, mining and lumber work and also service industries, the state income is still closely linked to farming revenue.
The State produces the county’s second largest amount of dairy produce, second only to California, and since the global hike in food and fuel prices, farmers have struggled to maintain profit margins as the big supermarket chains but the squeeze on them. As soon as there is economic uncertainty the luxuries of life are the first to be dropped, and in the case of Wisconsin there has been a real drop in tourist income, and with that, jobs created by the tourist industry.
Real estate is local and not national, so even if the national economy seems to being ‘rescued’ by the government’s $700Bn bail out package, little of this is likely to directly affect the residents of Wisonsin. The bail out package is directed at the failing banks and not the struggling workers trying hard to meet repayments on their sub-prime mortgages. National unemployment figures are set at around 6.1% but in Michigan this figure is nearer 8%.
The numbers of foreclosure homes on the market in Wisconsin is amongst the highest in the country, with over 4,500 new filings listed as at October 2008, in addition to 3,500 people filing for bankruptcy – this makes for bleak reading. If Wisconsin residents are concerned about making repayments and are considering selling their property, they will be hard pushed to find a buyer as the new build market has been flooded whilst there are all the discounted foreclosure homes already propping up the auction houses. In essence, those who cannot meet their payments and cannot sell their home are in a real danger of being repossessed and it seems there is little they can do to prevent this.
The foreclosure auction business is booming and even investors must be cautious as the foreclosed homes are owned by the banks, and even they are not safe from the current credit crunch, so the message for all is that cash is king in this climate of recession and uncertainty. So for any willing investors, unless you have capital behind you, the advice is to be wary of looking to snap up a bargain foreclosed house, as it may not be in good condition (often sold unseen) and you may have to spend another twenty thousand dollars making it habitable.