Home foreclosures by state rose again last year, with over 70% of U.S. housing markets posting higher foreclosure filings totals in 2010 compared with 2009 levels. With the housing market crisis seemed far from being over, legislators have made their moves and introduced various regulations in different areas meant to address the foreclosure problem.
Locally, foreclosure homes in Seattle and in the rest of Washington are also major problems for authorities and residents. Last year, around 33,000 properties in the region fell into foreclosure and majority of market analysts believe that 2011 will be much the same. According to housing experts, the biggest hurdle in preventing the continuous rise in the number of foreclosures in Washington is the unwillingness of most lenders to communicate with borrowers.
They explained that homeowners are losing their properties to Washington foreclosures because their lenders are ignoring their requests for loan modifications or are not even aware that requests have been made since borrowers cannot even get past local employees. Majority of residents have weighed in on the issue, arguing that a face to face dialog with lenders will go a long way towards solving their homeownership problems.
Washington lawmakers are currently considering a legislative bill that has been used by other regions, such as Nevada, to address the issue of home foreclosures by state. Under the proposed legislation, banks will be required to hold a face to face talk with borrowers before they can initiate a foreclosure action. The legislation is patterned after a law used in Nevada, which reportedly resulted in over 50% of participants retaining their properties.
Residents are hoping that the bill, which is called the Foreclosure Fairness Act, will become law in the state. Majority of homeowners believe that the legislation can help lower the number of foreclosure houses in the state; particularly since, if approved, the attorney general can have the power to take legal actions against banks and lenders who refuse to at least negotiate.
With home foreclosures by state expected to rise again this year, it is not only Washington that is considering implementing a similar law. The success of the legislation in Nevada has reportedly convinced a number of states to at least discuss the possibility of implementing the regulation.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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