The thing about which I’ve been thinking a lot is the effect of a foreclosure on a person’s credit score, due to its impact the whole housing crisis is taking place.
Frankly speaking it is one of the worst black marks you could ever get on your credit report other than bankruptcy, but the impact may not harm you going forward as much as it once was harmful in the past.
Increased unemployment is becoming the major cause of foreclosures. Obama Administration’s plans to keep people in their homes are shattering at their best. shattering with them are the dreams and hopes of millions who want to see an end to housing crisis and rebound of nation’s failed economy. 
Experience tells us, that in past few recessions, it was the real-estate sector that triggered all the right area’s of economy to stimulate it back to normal. real-estate industry helped in increasing production, creating jobs and spreading wealth. In all the previous recessions, investors jumped in at right time to take advantage of lower prices but no such miracle is happening this time around.
Even the consumers with good credit standing, who got themselves locked into fixed rate mortgages ,are finding it difficult to make their mortgage payments as things have changed for them. most of them are jobless now. Foreclosures are likely to increase in numbers and home prices will go down even more.
