The Process of Slowing Down Foreclosures
November 18th, 2008
How far successful will the joint efforts initiated by the government be in slowing down foreclosures? If the results were positive then it would be an example for others to emulate.
The latest government measures to slow down the foreclosures would help thousands of borrowers but it will not assist 80% of those who are in serious trouble especially in the once-hot markets like Florida and California according to federal officials. The government-aided measures targeted those mortgages under Fannie Mae and Freddie Mac. If successful a way out could be found for the mortgages that had been packaged as securities by private financial bodies and Wall Street.
Neel Kashkari of the Treasury (interim assistant secretary – economic rescue programme) said, “This new protocol will be a standard for the industry to quickly move homeowners into long-term sustainable mortgages.”
But the critics are doubtful if the measure would be able to reach out that far. Sheila Bair, chairperson of FDIC admitted that the solution worked out is not comprehensive enough. She said, “This is a step in the right direction but falls short of what is needed to achieve wide-scale modifications of distressed mortgages. Given continually rising foreclosures and their impact on the economy, we must address the need for appropriate economic incentives to prevent unnecessary foreclosures.”
- Bouncing Cheques Issued by Title Companies Lead to Foreclosures
- Increase in Foreclosures Prompting Class Action Legal Suits
- Avoiding Foreclosures by Walking Away From Loans are not Without Problems
- Foreclosure Assistance Being Taken on Tour by Housing Advocate
- Washington Mutual, the Symbol of the Foreclosure Crisis, Continues to be in Trouble
- The Consequences of not Paying Mortgages Can be Grim
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