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More States Are Launching Programs to Prevent Foreclosures

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By : Cassiano Travareli    99 or more times read
To avert the potentially disastrous situation of millions of Americans with foreclosed homes, 31 states have introduced various programs to help borrowers keep their homes and to prevent mortgage firms from imposing high interest rates on mortgage loans, as described in a publication by Pew Charitable Trusts.

The report, which was featured in Realtor Magazine, also highlighted the number of states which have introduced regulations against predatory loans and number of states which launched programs to avert foreclosures.

The report also said that the states have opened hotlines to facilitate communication with troubled borrowers and have established loan funds for the refinancing of high-interest mortgage loans.

Various news agencies, including the popular mortgage and housing news site HousingWire, have covered California’s success in its foreclosure prevention programs and its influence on other states. California’s strategies in persuading more mortgage companies and loan servicing firms to help troubled borrowers have obviously succeeded.

As shown in a survey conducted by California’s Department of Corporations, the overall number of borrowers who restructured their mortgage loans has increased while the overall number of foreclosed homes has decreased, compared to data collected in previous months and to mortgage loan figures in 2007.

While states are opening their facilities and resources to help homeowners, federal agencies have also been working to establish mortgage-guarantee programs that will be launched across the country. The financial regulation agencies, Federal Deposit Insurance Corporation (FDIC) and Treasury Department, have been holding discussions to be able to offer guarantees for millions of troubled mortgages.

FDIC chairperson Sheila C. Bair has also called on national legislators to introduce credible strategies to prevent the continued rapid decline of the residential market. She urged them to give special attention to the foreclosure problem and prevent a catastrophic situation of millions of Americans forced out of foreclosed homes.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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