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Obama Takes Action on Foreclosures and Federal Homes for Sale Problem

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By : John Cutts    99 or more times read
With the high number of foreclosed properties and federal homes for sale continuing to drag the whole U.S. housing market down, the administration of President Barack Obama has stepped up and announced a plan designed to arrest the problem and save millions of homeowners from the foreclosure crisis.

The announcement garnered mixed reactions from local markets, including Nebraska. The state is no different from other U.S. areas in terms of foreclosure problems. Omaha bank owned homes and foreclosures remain at almost the same level despite government mitigation efforts, including the tax credit initiative, local realtors have revealed.

Despite the fact that some analysts are reluctant to believe that the latest government effort will solve the problem of foreclosures and bank owned homes in Nebraska, they readily admitted that it is a relief to know that the government is doing something to address the crisis.

The President himself has admitted that the current plan will not solve the problem of high numbers of foreclosures and bank owned houses, but it could make a difference, particularly for homeowners who are responsibly paying their mortgages but are being affected by the declining values of properties.

The administration's latest plan involves a tag price of $75 billion. According to the government, it could help prevent around nine million households from losing their properties to bank foreclosures and federal homes for sale transactions. In a speech delivered at a Mesa high school, Obama stated that the plan will not end foreclosure overnight, but it could put a lid on the worst effects of the housing crisis.

The plan centers on helping homeowners whose loan debts are higher than the value of their homes. The President stated that the latest effort is aimed at homeowners who acted in a responsible way but were dragged down by economic and market woes. The money reserved for the program will be used to provide mortgage firms with incentives to lower interest rates and will be used to provide refinancing options to homeowners.

The legislation that will give effect to the program will also aim to provide bankruptcy courts with the power to modify mortgage terms and prevent homeowners from losing their properties to federal homes for sale and foreclosure auctions. The new program is set to be launched in two weeks time.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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