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Anti-Foreclosure Homes Plan Too Late for Some Families

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By : John Cutts    99 or more times read
Last February, President Barack Obama announced his $275 billion anti-foreclosure homes plan intended to help nearly 5 million owners of distressed properties.

The anti-foreclosure homes plan was welcomed with much hope by the housing industry and millions of distressed borrowers, but not by some troubled homeowners in Washington who regard the program as too late the hero.

As of December 8, 2008, there were 172 homeowners in King County, Washington who received foreclosure homes notices. These figures indicated that the flood of foreclosures is continuing its destruction across the country despite various campaigns to stop its assault on the lives of millions of Americans.

A typical distressed homeowner in Washington may receive a trustee sale notice even if he just had $4,868 overdue mortgage.

Washington State Department of Financial Institutions director Scott Jarvis said that once distressed homeowners received foreclosure homes notices, it is already late to help them pull back their properties away from foreclosures.

On a positive note, Washington still fares better than other states with the number of foreclosure homes lower than the national rate and way below the foreclosure rates of Arizona, California, Florida and Nevada.

However, even if the number of foreclosure homes in Washington is not that remarkable compared with other states, the figures are still unprecedented in the area. Data from the Mortgage Bankers Association showed that the number of distressed properties in Washington reached 1.19 percent from July to September 2008, twice the historic 0.61 percent foreclosure rate in the state.

On the other hand, foreclosures created a flood of low-priced houses in Puget Sound Area, Washington. The average mortgage loan is about $262,500 and two out of three mortgages are for houses $350,000 and below.

Back in King County, one in every five distressed borrowers owe back payments of not more than $10,000 and foreclosures affect 28 out of 39 cities in the county.

Some communities with the most number of repossessed homes are Maple Valley and Tukwila with 8 each, followed by Federal Way and Kent with 7 each.

Meanwhile, some homeowners in the state who remain current on their mortgages but are struggling to make payments are putting their hopes on Obama’s foreclosure prevention program which will provide $75 billion for loan modifications.

They hope that the program would rescue them from their current dire situation and help them remain in their properties.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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