Maryland Judge Organizes Foreclosure Support Group

Across the nation, millions of homeowners are struggling with their mortgage debts and a significant percentage of them are losing the battle. In Maryland, the continued rise in the number of foreclosure homes has even prompted a Courts of Appeal chief judge to urge non profit organizations, local officials and individuals to help these troubled borrowers.

Fortunately, the plea of the chief judge did not fall on deaf ears. A new program named Foreclosure Prevention Pro Bono Project has been launched to address the current problems in the housing crisis. The project aims to train local lawyers so that they could advice distressed homeowners and assist in foreclosure counseling. The said training program will last the entire summer.

In Maryland, there are about 33,000 licensed lawyers who received a letter from Chief Judge Robert Bell, urging to participate in the program and volunteer some of their time as well as make monetary donations.

The action of the chief judge and the subsequent formation of the project came at a time when the foreclosure problem in the state has become more pronounced. The entire state is feeling the negative impact of the rising foreclosure rate, declining home prices and sluggish home sales.

According to the Mortgage Banker’s Association, during the first quarter of the year, the number of Maryland homeowners who were late in their mortgage payments reached a staggering 70,000.

There are various reasons why these homeowners are having difficulties paying their mortgage debts. Many are suffering from financial problems brought about by unemployment, illness or marriage troubles. Others, on the other hand, simply could no longer afford their mortgage dues especially after the interest rates have reset.

Other cities and states could definitely benefit from the example set by Maryland when it comes to providing assistance to troubled borrowers.

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Newly-Approved Housing Bill Considered as Good Band-Aid

Finally, there is hope for troubled homeowners. The very controversial foreclosure housing bill, signed by President George Bush last Wednesday, is considered to be the a good band-aid since it is the first major step that the government has taken to address the foreclosure crisis.

It includes key housing provisions including the rehabilitation of the federal agencies, Fannie Mae and Freddie Mac, grants for states that will allow them to buy and repair foreclosure homes and a mortgage-relief plan for strapped homeowners so they could shift to more affordable mortgages.

But the 694-page legislation is still raising doubts among many analysts and real estate experts.

For starters, the number of troubled homeowners that could be approved for the program is relatively just a small percentage. According to the Government Accountability Office, about 400,000 qualified borrowers will be able to enjoy the mortgage-relief provisions of the new housing law. Considering that the number of foreclosure filings for the last couple of years has reached millions, it is certainly something to think about.

One economist even predicted that by the end of the present year, there will be an estimated 3 million new mortgage defaults.

If this is true, then the new housing legislation will certainly just be acting as a band aid to slow down and minimize the havoc wreaked by the enduring foreclosure crisis. The federal government needs to still address issues including unemployment, weak economy and high fuel prices in order to find a long-term solution to the problems created by the mess in the mortgage and housing industries.

For now, everyone is holding their breath and waiting if the new housing law will indeed do its job of providing assistance to troubled homeowners and if could somehow stop the bleeding wound that the foreclosure crisis has inflicted on the housing market.

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Bush Signs Foreclosure Rescue Bill

In the last ditch effort to address the foreclosure rise as well as the decline in home prices, US President George W. Bush finally signed the very controversial housing bill that basically involve a foreclosure rescue package. It actually took a long time for this bill to be approved as never-ending debates waged on between legislators.

The said package includes the granting of $4 billion to states so that they could buy and then repair foreclosure properties. In addition, Freddie Mac and Fannie Mae are set to be rehabilitated in order for these federal institutions to be managed better. They will be prepared for the accommodation of the $300 million provision that will help distressed homeowners shift to government-backed loans in order to avoid foreclosure.

Although this law has been opposed by the Bush Administration in the beginning, the decision to do was reversed since the new legislation included several key housing reforms that the Administration has been supporting. It also included offering of tax breaks for buyers, setting up of national licensing system for loan officers and mortgage brokers and increasing the ceiling of mortgage amount that the federal agencies Freddie Mac and Fannie Mae can guarantee.

The signing of the law coincided with the record decline of home prices from last year and the drop in the Standard & Poor’s / Case Shiller composite index for 20 metro areas. The index fell by 15.8 percent compared to May 2007.

It was signed in the Oval Office at 7 am this morning by the President together with the economic team, headed by Treasury Secretary Henry Paulson, who played a major role in the negotiation between the Democrats and Republicans.

Every American is hoping that the signing of the foreclosure rescue legislation will be a big step toward the end of the foreclosure crisis and recovery of the nation.

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San Francisco foreclosure homes: A Business Opportunity

There has been a rise in San Francisco foreclosure homes for quite some time now. This is owing to the fact that number of home loan defaulters has increased to a great extent as in comparison to the previous year. Market has been down and the number of people losing jobs has gone to a rise. This has led to a poor credit rating of people, and they end up either re-financing at much higher interest rates or lose their homes. The problem is not for the middle class people alone, even the millionaires feel the crunch. Most of them have forecasted that they will lose their real estate to San Francisco foreclosures by this year ending. The statistics show that people from all strata are bound to suffer due to the slow market.

Another reason for rise in San Francisco foreclosures is that the investors have reduced their investments in major home mortgage insurers. The mortgage insurers have reported a loss this quarter due to the slow market. They in turn are not able to support homeowners in retaining their homes. The mortgage insurers have also come under fire from credit rating agencies due to the fear of slow market and increasing number of mortgage defaulters. This includes most of the small and big mortgage insurers who had offered home loans to people with a poor credit rating and less numbers of documents.

It is great idea purchasing foreclosure homes in San Francisco. It offers a great deal of savings close to 10 to 50 from the original market price. A lot of money in the long term can be saved by this. San Francisco is one of the most beautiful places to stay in. It makes a wonderful one stop destination for families to settle down forever owing to its scenic beauty.

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