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Additional Measures Are Taken To Address Unrelenting Foreclosure Crisis

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By : Cassiano Travareli    99 or more times read
It has been six months since lenders have implemented modifications to ease the burden of homeowners on mortgage payment. In spite of this, a significant number of borrowers is still on the verge of losing their property. The negative outcome has led skeptics into thinking that government efforts to stop the housing crisis are merely put to waste. The problem is not effectively addressed and the money allotted for foreclosure prevention is just blown.

This year, 2.25 million properties are expected to go to foreclosure. This is more than a hundred percent increase from the one million cases witnessed prior to the housing crisis.

The housing crisis is believed to be the root cause of the recession in the country right now. It pulled down the entire economy of the country which is why concerned parties have been trying to put a stop to it.

Bank regulators, however, have been unsuccessful in finding ways to surpass the housing situation. They have continually employed programs to aid consumers in mortgage payment but have always failed to solve the bigger issues.

Some argue that in order to put a halt to the current housing crisis, measures that would assist homeowners in mortgage payment have to be further taken. On the other hand, some argue that the crisis will only be fully resolved when the overall economic condition of the country begins to recover.

Still, lawmakers and some bank regulators are hopeful that continued consumer aid will solve the problem. Meanwhile, the Treasury will be allotting $250 billion to a number of banks in order to help boost the financial markets. The department was given a budget of $700 billion to help problematic markets recover.

In addition, more than $600 billion in debts and properties will be bought by the Fed from Fannie Mae and Freddie Mac. All these efforts, then and again, are geared towards solving the foreclosure crisis.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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