Practical Solutions For Foreclosure Problems Urgent

March 5th, 2008

The foreclosure numbers are spiraling despite palliative measures taken at local, state, and federal and community levels. Those with adjustable rate mortgages have been fast slipping into the foreclosure zone causing headaches for the entire American nation.

In Michigan the foreclosures have risen by 28.2% since 2005. Here the situation is further aggravated because of the crisis in manufacturing industry. Since Bush took reins, three million manufacturing jobs have disappeared. Nothing is being done to focus on it. Simultaneous attentions have to be given immediately to the manufacturing and mortgage problems. It will require a concerted effort from all the levels taking under its umbrella the neighbourhood organizations, lenders, brokers and most important of all the borrowers. It is the people who are the wealth of a nation – they must continue to stay in the houses that are their homes and side by side with this the real estate market must be brought back to rails so that others too can have the opportunity to live in houses of their own.

Many meetings are being held in Michigan attended by leaders of local and state governments as well as community organizations and families facing foreclosure. The target is to see that people move into abandoned house and make it into homes once again. It will check the fall in the real estate market. Unfortunately the funds for executing such a plan are not currently available.

The US Senate is mulling over a housing stimulus package that includes in it many suggestions – increase of federal grants to areas where foreclosures are most concentrated for the purpose of rehabilitating abandoned units, grants for more pre-foreclosures counseling, authorizing states to float new bonds exempted from bonds to help the house owners in difficulty to refinance the loan.

Some halting steps have already been taken by the Congress. Last December saw the passing of Mortgage Forgiveness Debt Relief Act. If the lender forgives a part of the loan then that will not be considered anymore as taxable income. Till now it made matters worse for the house owner struggling to survive.

Dispossessed people speak ill of vote prospects for politicians. Hence foreclosure has become a prime issue in the ongoing vote tussle. Till now nothing has been suggested that will go to the root of the problem. Trimmings here and there will not be of help – it will only postpone but not eradicate the foreclosure problem.