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Foreclosures Take a Drop from December to January

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By : John Cutts    99 or more times read
The number of Americans who are on the verge of foreclosure has decreased last January, although a year ago, it was still up from the same month. Homes lost to foreclosures would have been more if it were not for the initiatives to delay the foreclosure process.

According to RealtyTrac Inc., more than 274,000 homes all over the nation have gotten at least one notice of foreclosure in the previous month. Even though that was down by 10 percent from December, it is still 18 percent higher compared to a year ago, says the California-based foreclosure listing service.

The resolution to delay foreclosure sales in the winter holidays by government-controlled mortgage industries like Fannie Mae and Freddie Mac became a factor to the monthly drop. In addition, Governor Charlie Crist of Florida negotiated a deal that lenders in the Florida state permitted the 45-day stop to the new foreclosure petitions.

Moreover, a federal regulator last Wednesday advised over 800 thrift institutions to delay all foreclosures as the top economic officials of President Barack Obama shall utilize plans to let borrowers stay in their homes. The administration intends to spend $50 billion to fight the foreclosure crisis among owner-occupied and middle class homes. The housing plan of the administration is expected to be announced in the next few weeks.

It was also pointed out by John Taylor of the National Community Reinvestment Coalition that the Obama administration should approve the utilization of government money to buy up mortgages and eradicate the multifaceted mortgage-linked securities, and reorganizing them at more reasonable levels.

The administration is also assumed to support the Congress’ move to permit bankruptcy judges to modify the loan terms of primary homes. According to Obama, it does not make sense if judges are not permitted to do so. This is in opposition with the mortgage industry, who contends that this permits lenders to charge rates that are lower.

The report by RealtyTrac Inc. also adds that Nevada, California, Arizona and Florida had the top foreclosure rates of the nation. One in 76 homes in Nevada obtained a foreclosure, while in California, the number was one in every 173 homes. Included in the top 10 were Oregon, Illinois, Georgia, Michigan, Ohio and Idaho.

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