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Foreclosures and Housing Issues Top New Presidential Agenda

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By : Leticia Carvalho    99 or more times read
Now that the elections have come to a close with Obama emerging victorious, the new president is faced with pressing issues concerning the dismal situation in the housing industry. With 1.9 million foreclosures realized and millions more imminent, working on these issues may begin immediately even before he takes seat in January.

First on the list would be to finalize the plans for Fannie Mae and Freddie Mac which the previous administration placed in conservatorship. These GSEs (Government Sponsored Enterprises) and how the government will utilize them will set the course for the future of the country’s mortgage finance system. With the number of foreclosure properties in the rise, the only mortgage financing sources available is through the government. Without a new mortgage system, builders will close down and millions will lose their homes.

Mortgage rates have soared recently, and millions stand to lose their homes to foreclosures unless the financial crisis is fixed and the stock market brought back to normal. The new government should work on these fast as experts predict this trend in the financial market will continue until the next year.

Many experts and economists believe that solving the problems in the housing market and putting a dam across this wave of foreclosures can turn the economy around. A new program should be established that will effectively put home values up, while providing a breathing space for beleaguered homeowners. Proposals from various sectors have been placed up front which includes temporary tax credits for buyers in the next nine months and for a mortgage rate buy down from the government.

The new government should prioritize actions on these issues to finally put a stop to the nationwide recession and the resultant effect of unemployment. Topping these actions should be a concretized plan to restore housing values and help homeowners survive the tide of foreclosures. With the housing market back in good health, the nation would be assured of a big comeback for the country’s financial system.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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