Congress has been preparing two foreclosure prevention bills that would be presented to Barack Obama as soon as he starts working as president in the last weeks of January.
FDIC has required more than 5,000 banks and savings and loans associations that received help from the first $350 billion of the Troubled Asset Relief Program in 2008 to report on how they were able to help foreclosure-troubled borrowers.
Failed Alabama-based bank Colonial BancGroup has been acquired by BB&T Corp. Commercial property foreclosures in Florida and Nevada decimated the bank's funds.
With no clear solution on how to stop the spread of the foreclosure crisis, banks have finally decided to modify their mortgage loans, an approach that they previously refused to do.
The Obama Administration is looking at the possibility of reducing monthly mortgage payments of homeowners who are in danger of losing their properties to foreclosure.
The unabated increase in the number of Georgia foreclosure homes and loan defaults has been blamed for the shutdown of Georgian Bank. The bank closing is the 95th case in the United States for this year.
Obama’s foreclosure plan will be implemented with the help of several federal agencies, government corporations such as Fannie Mae and Freddie Mac and the mortgage banks.
U.S. President George W. Bush must make foreclosure policy a top domestic legislative priority before his term ends to address the worsening housing crisis.
Many analysts point to the continued growth of foreclosure listings as the reason for the continued economic downturn. Expected results of the federal foreclosure prevention program are not yet being felt in many areas of the country.
The Securities Industry and Financial Markets Association and other groups have called for a return to the original purpose of the $700 billion foreclosure prevention fund.
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