Sacramento Continues with Its Foreclosure Filing Even after Obama’s Rise

November 12th, 2008

Sacramento Continues with Its Foreclosure Filing Even after Obama’s Rise
A total of 33 bankruptcies have been reported to have been filed in the area of Sacramento, a day after Barack Obama became the president of US. Apart from that, the unemployment rate in California is over 7 percent. The problem of home foreclosure is continuing with its assault in the real estate market of the region. However, it is expected that this downturn is going to change soon bringing a ray of hope for the people of the Sacramento area. Sung Won Sohn, economist of California State University has said, that the president just needs sometime to put everything in place. He has also said, “The U.S. economy is like an aircraft carrier – you cannot turn it around on a dime,”

The rate of unemployment has gone up by 7.4 percent in the Sacramento area. It is quite evident that the economy of this region won’t become stable till the time the real estate market becomes sound. Obama has several plans to help the distressed homeowners. This includes a 90-day moratorium that will provide the right to bankruptcy judges to make a reduction in the amount of debt. Sohn believes that the rise of Obama to the chair of the US president is definitely going to help in making a pro-active government that will surely regulate the financial market properly. The rescue package worth $700 billion that was ordained in the month of October may be just the start of an era where the government thinks of involving itself more straightly in the economy.

Levy, who is the director of the Center for Continuing Study of the California Economy, said, “We’re supposed to be getting the economy back on track.” Obama has promised to make a tax cut on the income of the middle class people. It has been estimated that those with an annual income between $40,000 and $70,000 will be able to save nearly $2,200. At the same time, Obama has plans to increase the tax rate for people earning over $250,000 annually. The distressed homeowners facing the problem of foreclosure are just eagerly looking towards a positive result soon.

Gov. Arnold Schwarzenegger has also proposed a 90-day moratorium along with a program on loan modification. This will take care of the fact that the mortgage payments are not going to take over 38 percent of the income of the homeowners. The area of Sacramento has witnessed over 30,000 foreclosure cases since the beginning of 2007.