For the period of July to September, there are over 2,700 Americans losing their homes to foreclosure each day. Such a huge number will make one think if the government is really doing anything to end the foreclosure crisis.
Unfortunately, the federal government has been working over time – creating and approving mortgage rescue programs left and right – in order to address the problems in the housing industry. It is possible that the government has underestimated the foreclosure crisis and did not expect them to be quite as serious.
Some experts believe that this underestimation could have been the reason why the nation is having trouble keeping up with the foreclosure crisis. In addition, there are also certain factors that have made it nearly impossible to save the housing industry. They include:
For housing and consumer advocates, the government responses were also narrow and slow. Last July, a $300 million housing rescue program was launched in order to help at most 400,000 distressed homeowners. Obviously, the amount is not in the same league as the $700 billion bailout plan recently approved to help troubled financial investment corporations.
Plummeting home prices especially in states like California, Nevada and Florida.
Speculative buyers and investors who are walking away after their investments in real estate properties fell through.
High unemployment rate which is the primary reason why many homeowners were not able to meet their mortgage obligations. According to Freddie Mac, over 45 percent of all mortgage delinquencies cited job loss or unemployment as the cause.
The huge difference has already outraged a lot of politicians and resulted to a promising settlement with Bank of America, amounting to $8 billion earlier this month. The said settlement will take effect on December 1 and is designed to provide assistance to 400,000 Countrywide troubled borrowers in 11 states.
Author Resource:-
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years. Read about the following article Foreclosure Crisis: Why It Keeps Getting Worse by Cassiano Travareli.
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