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Homeowners Facing Foreclosure Hits Record High

Posted By admin || 23-Apr-2009

According to an article in the Dallas Morning News, foreclosure filings in the Dallas-Fort Worth area have risen by 25 percent, with 5,500 homes facing foreclosure in May.

The article said:

Worsening economic conditions have caused more homeowners to fall behind in their mortgage payments. But analysts with Foreclosure Listing Service say the biggest reason for the increase in postings in the last few months has been moratoriums on foreclosures put in place by many mortgage lenders.

So they have finally lifted the foreclosure moratoriums. The foreclosure moratoriums were put in place to give the Obama administration time to find a "fix" for the foreclosure crisis; but foreclosures continue to rise. The voluntary mortgage modification program designed to stop foreclosure has been by all accounts a failure.

Many homeowners, unable to fight through all of the bureaucratic red tape of "voluntary mortgage modifications" simply give up and succumb to foreclosure. But as if we haven't learned our lesson, the government is given the mortgage industry another $10 billion to "help" homeowners facing foreclosure. Whatever happened to the other money we gave them to "help" homeowners facing foreclosure? But I digress...

If the government really wants to effectively help homeowners facing foreclosure, they need to give the bankruptcy courts the power to modify toxic mortgages during bankruptcy. And if they want to give away billions of dollars, maybe they should give grants directly to the homeowners because the mortgage industry has failed to "help" homeowners as they promised.

Categories: Foreclosures
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