The exploding figure of house repossessions is spreading out from Florida, Nevada and California to the far corners of the nation. It is not just those on the margin who are facing this crisis, but those with substantial incomes. Some of these house repossessions are a result of a combined lowering of home values and borrowing from these fading values with home equity loans. These home equity loans along with the mortgage could not be paid back because these people were overextended or because it was not worth it anymore, since the house went so far down in price.

Each bank's house repossessions add more homes to the market which lower the home values more by flooding the market. The more homes for sale, the lower the price must be, to successfully sell a comparable home. When the bank finishes adding fees to the repossession actions you are lucky to come away from the home with any money. And this after you might have had 50% equity and years of sweat put into paying the mortgage. It must be a terrible feeling.

The banks have not made much of an effort to extend the length of the mortgages to help people stay in their homes. Contrary to the popular notion that the bank does not want the homes, the bank taking possession of the homes can sell them again at less money, but they were collecting principal and interest for years and have come out well ahead. When the prices go up again the banks will make even more money.

In the 1930's many neighbors gathered around forced sales after house repossessions to bid a $1 and then sell the home back to the owners. Now through l new laws and strong arm tactics by the government not much of this is happening. Only in some rural areas are the people putting up a fight.

Now, if someone is involved in a house repossession because they overspent, that is one thing. But, if the payments were late due to a major illness then sympathy should be extended to the homeowner in foreclosure. Home repossessions extend to farms where the farmer is heavily leveraged due to farm machinery and futures prices which can change often. The large concerns like ADM (Archer Daniels Midland), would be more than happy to add more farmland to their massive agribusiness holdings.

As the incidence of property repossession increase the spending power of the American people decreases substantially out of fear, in addition to having lost their home. Neighbors of homeowners who are now without a home will spend less. It has been said that if under 10% of the homes are repossessed 90% are still paying their mortgage. A rate of even 7% is a lot and will diminish the growth of the economy.

House repossessions will eventually become a bit more violent as they increase. In the rural areas first, then this belligerence will spread to suburbia and the cities. Perhaps, that is what is needed to correct the ills that led to the problems in the first place. There is much blame to go around.