Unemployment is Now Stoking The Foreclosure Flames

Posted on February 5, 2009
Filed Under Foreclosure Homes | Leave a Comment

It is no longer interest rates that are holding centre stage in the crisis drama. It is unemployment that is now stoking the foreclosure flames. The department dealing with unemployment benefits is overwhelmed with work.

The unemployment rate in Maryland is the highest since the last 15 years. It has resulted in many workers seeking unemployment benefits for the first time in their lives. The unemployment rate here is 5.8% – lower than the national rate of 7.2%. But the number of applicants for unemployment benefits has doubled from what it was in 2007. The number of job losses increased from 9,800 to 77,000 according Department of Labor Licensing and Regulation, Maryland. Maryland had last reached an unemployment rate of 5.8% in October 1993 as per the records of the Bureau of Labor Statistics.

In Wicomico County the rate of unemployment was 6.9% in November 2008. Memo Diriker of Salisbury University says that this trend could worsen as the year advances and ultimately lead to a surge of foreclosures in Lower Shore. He said, “The first wave was the sub-prime lending market. The next wave that is coming is unemployment.”

The benefit allows a person who is qualified for unemployment insurance to have a debit card having a pre-paid balance for up to 20 weeks. The amount in the balance will be 54% of the weekly wage of the beneficiary. Any and everybody without a job are not eligible for these benefits. The person must lose his job due to no fault of his or if he has left on this own accord there must be a good ground for it. If a person gives up his job whimsically for not liking it, the individual will not qualify for applying for a month – this being in the form of a penalty. The workers who are on unpaid leave (furloughed) can seek unemployment benefits if they are off work for an entire week. Illegal aliens are not eligible for any unemployment benefits.

The applicant has to contact the DLLR and file a claim. This can be done on the Internet or personally. Jim Wolfe of a call centre in Salisbury said, “We’re substantially busier than we’ve been in years.

At the One-Stop Job Market, Salisbury, those searching for work and seeking training jumped by 56% in the last three months of 2008 in comparison to the same period in the previous year.

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