On Thursday, US Treasury Secretary Timothy Geithner will meet with President Barack Obama’s economic team to discuss the government’s efforts to help prevent more foreclosures. The country has suffered many foreclosure cases as the economic crisis worsened until the end of the year.
Although there have been improvements regarding the efforts to stem foreclosures, there is still much to be done. In states that experienced the worst number of foreclosures such as California and Florida, there have been significant decreases in foreclosure rates. This is primarily due to the states’ efforts to take active participation in preventing foreclosures. Moratoriums on foreclosures and mortgage adjustments have been released in some states, giving homeowners more chances in keeping their properties.
Geithner’s meeting with the new economic team under the Obama administration is aimed at helping troubled homeowners and keep US citizens in their homes. This is also part of the whole government’s rescue plan amid the economic crisis. A lot of federal officials have already called for banks to give more chances to homeowners at keeping their homes. This is while the whole country is waiting for the release of the rescue fund that is part of the bailout plan for banks.
Citigroup Inc., Bank of America Inc. and other major banks have committed their services to assist homeowners and help prevent foreclosures. They said on Wednesday that they will temporarily freeze orders on foreclosures to give loaners more time to find ways of how to keep their homes.
At present, the whole country is waiting for the release of the $50 billion rescue fund dedicated to stemming foreclosures. The Office of Thrift Supervision is also calling on banks to suspend foreclosures until the Treasury Department along with the White House releases the emergency fund.
Geithner will also hold a meeting with the Dominique Strauss-Kahn, managing director for the International Monetary Fund, to discuss collaborative efforts between the US treasury and the IMF to replenish the strength of the world’s economy.