President Obama’s $75-billion program to avert foreclosures might not be able to help millions of distressed homeowners, as many homeowners are disqualified by the many restrictions in Obama’s program.
Arizona posted an almost 35 percent increase in the number of homeowners who complained against fraudulent bank owned foreclosures prevention schemes. The Attorney General’s office has ranked fraudulent loan modifications as among its top 15 most common fraud.
The foreclosure crisis has affected thousands of homeowners in Michigan. Many of them were desperate to protect their properties from Michigan foreclosure listings that they would grab on anything that comes their way if it means saving their homes from foreclosures.
Finally, House lawmakers have approved President Obama’s proposal to give bankruptcy judges the authority to order mortgage loan reductions to prevent distressed homeowners from going into foreclosures.
Homes from foreclosures decreased in number in Massachusetts last year, but the number of mortgage defaults increased. Defaults climbed up by more than 28 percent to almost 28,000 in 2009.
While applauding President Obama’s efforts to stop foreclosures, the Congressional Oversight Panel said his program lacks schemes to help the owners of second mortgages and did not pursue legislation to empower bankruptcy judges to order loan modifications.
The number of foreclosure rate is becoming higher. More and more people are losing their homes. Thanks to organizations like Washington ACORN, some borrowers can still opt to save their properties.
California Assemblyman Ted Lieu and Columbia professor Christopher Mayer have called for an expansion of the foreclosure program to include underwater borrowers. Homeowners facing tax foreclosures are not included.
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