Modifications VS Foreclosures

The Obama Administrations plan to help consumers from losing there homes to foreclosure has been genuinely effective in assisting approximately two hundred thousand homeowners. The first half however of 2009 alone has brought on nearly one point eight million in foreclosures across the country. Mortgage foreclosures over the next two years are expected to rise to over four million in the next two years.

The rate of foreclosures is still out pacing the rate of modifications. The administration is pressing the mortgage industry to keep up the pace in recent weeks however this alone is not going to improve the countries foreclosure crisis.

The only real way to prevent this crisis from ascending is to combat the job loss in America. The national unemployment rate is nearing ten percent and those are the figures that included those receiving unemployment. Unemployment figures do not include those people that are no longer receiving unemployment even if they are still unemployed.

Homeowners that can qualify for the modifications are pressed to maintain the modification payments for at least three months before the modification becomes permanent.  If you’re unemployed or become unemployed it’s extremely difficult to make those payments and the homeowner falls right back into foreclosure.

The Obama Administration must do something to create jobs if it expects to stop this spiraling effect and level off the countries economy.


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