Why Foreclosure Rates Are Still High And Continue To Increase

By Author: Nick Adama
Total Articles: 197
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The question on many homeowners' minds is born in regards to foreclosure statistics. Are they still increasing? Where does the United States currently stand in this foreclosure problem? Most people asking these questions understand that the government has its hand in attempting to solve the problem, raise} home values, and improve statistics.

Government bailout plans have been in effect since October 2007 and another was established early in 2009, yet the national foreclosure rates have continued to go up in many places. Some cities and states are seeing decreases, but many experts are skeptical as to their permanence. In fact, some pundits see an even more dismal housing sector in the near future.

The problem lies in the horrible cycle associated with some people being in financial trouble while others want to prevent it from occurring to them. You may be facing foreclosure, but your bank has many borrowers that may be in the same situation. If they make exceptions for everyone, they may end up putting themselves in the same jeopardy. Thus, banks have been somewhat unwilling to realize the huge losses they have ...
... taken on their mortgage investments, and have been rejecting workout programs as a result.

Back at the end of 2007, the United States Treasury Department was already putting together plans in an attempt to nip increasing foreclosure rates in the bud. Unfortunately, there is clearly a flaw in the plans they have laid out as the number of homeowners who fall behind on their mortgage payments continues to rise. The reason is because no resources were made available in the assistance of the growing number of homeowners and the lag in aid led to even more foreclosures.

As the plans currently stand, there are at least five different bailout programs to assist in lowering the rate of foreclosures nationwide. These include Hope Now, Project Lifeline, the Hope for Homeowners Act, the Home Affordable Modification Program, and the Home Affordable Foreclosure Alternatives plan. So far, none has been as successful as initially expected and hoped for.

The argument made by many financial experts is that the reason these policies have failed to have the impact hoped for is because they are cheap-money policies. All they have really demonstrated is a greater downward pressure on the state of the economy. With localized improvements in foreclosure statistics, many hope the limited number of improvements will rise throughout the country.
Nick publishes articles on the ForeclosureFish website to provide foreclosure help and news to homeowners in need of assistance. The site examines various ways to save a home, including deed in lieu, filing bankruptcy, short sales, defending foreclosure in court, and more. Visit the site for an e-book explaining the basics of foreclosure and how to stop the process: http://www.foreclosurefish.com/