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Federal Programs Unable to Dent High Number of Bank Foreclosure Houses

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By : John Cutts    99 or more times read
The number of government and bank foreclosure houses nationwide remains high despite the U.S. federal government's efforts to mitigate foreclosure. A handful of government program analysts have told a Senate panel that the administration's efforts which aim to help households avoid foreclosure is not working as expected. They also stated that the Department of Treasury has failed in its attempts to fix these programs.

Foreclosed homes for sale Omaha, NE, just like in most areas of the U.S., continue to record rising numbers. Analysts stated that this somehow supports some claims that the financial bailout efforts launched by the government have not made much difference in terms of lowering the number for foreclosure filings nationwide.

As the number of Nebraska foreclosed homes and foreclosure rates in other areas of the U.S. continue to rise, analysts have also cited the Treasury Department's role in the financial program's lack of significant success. According to these analysts, the department has failed to address demands from various sectors to establish definite goals for the bailout efforts early on.

Some market observers have alleged that the Treasury's inability to act fast will likely hinder the housing market's recovery. They also stated that more bank foreclosure houses will drag residential property prices down and will make the housing market problems worse.

One of the programs launched by the federal government is a homeownership assistance effort designed to lower real estate foreclosed homes numbers by reducing the monthly mortgage payments of households who cannot afford their monthly dues. However, nationwide statistics showed that only around 400,000 borrowers were able to prevent their properties from getting foreclosed under the program. Data also showed that over 500,000 borrowers have quit or failed to complete the program before it can make any difference.

The bailout effort has earmarked around $50 billion for mortgage modification projects. However, only $248 million have been used so far to help homeowners who require loan modification help. Some analysts believe that one of the reasons for the slow implementation of the assistance program is Treasury's decision to give mortgage firms the final say on which homeowners should qualify for a mortgage principal balance-reduction. They further added that lenders have too much leeway when it comes to satisfying program requirements which result in more properties ending as bank foreclosure houses.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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