New Foreclosure News

Homeowners that are having trouble making their mortgage payments, and are facing foreclosure are not going to be receiving help from the government this year. Lawmakers and Regulators have stated that they prefer to “wait and see” instead of taking preemptive action. There are many problems within the mortgage industry as a result from lenders who have been giving loans to people with bad credit. The market is showing signs of fixing itself in some cities throughout the nation, and the greater economy has not yet suffered from the effects of the housing market, which is why government officials refuse to take any action. While many are pushing for aggressive action against fraudulent lenders, the Chairman of the Federal Reserve states “We have an obligation to prevent fraud and abusive lending,” but then states “we must tread carefully as not to suppress responsible lending or eliminate refinancing opportunities for subprime borrowers.” Many are saying that this point of view is optimistic and they see this as an opportunity to strengthen lending laws, and are frustrated at the over-optimistic views that they feel lawmakers are taking. On Wednesday, the National Association of Realtors said that they expect homes to drop over the rest of the year by 4.6%. This would bring the total home sales to $6.2 million, and the median home price to $219,000 (down by 1.3%-the first drop since the NAR began keeping track). The foreclosures rate is rising at an incredible rate, and it is already double what it was 2 years ago. Almost 2 million Adjustable Rate Mortgages are set to rise next year, which will probably lead to a new wave of foreclosures. However, even the rapidly rising foreclosures rate isn’t convincing Congress to take action against the lending industry. Lending companies are trying to prevent any action, saying that they are already working to help homeowners that are facing foreclosure. Many of the big mortgage companies, such as Wells Fargo, Fannie Mae and Freddie Mac have stated that they will assist homeowners change their loan terms before their Adjustable Rate Mortgages reset to higher rates early next year. Lawmakers are trying to assure that high-risk borrowers are still considered for mortgages by lenders, while still regulating abusive lending practices. They want to fix the abusive practices, while still making sure that they do not regulate subprime lending to death. In addition, many banks and lending companies are starting to regulate their own practices a little more with the intense focus that is being placed on their industry.