No Real effective action being taken to stop foreclosures

by Simon Lindsay on Stop Foreclosures

One of the reasons for a high default rate of loans by homeowners is the price decline. According to the Fed Chief, the best thing to do is find solutions to stop foreclosures as it will be in everyone’s best interest. There has been a wave of bank foreclosures sweeping the country starting in the first quarter of 2008 itself. Such a rapid increase in the number of government foreclosures has caused heavy losses for several lending firms and financial institutions apart from the fact that it is causing an unprecedented decline in the real estate and home prices across the country. What the current situation demands are concentrated government effort as well as assistance from the private-sector. This was a remark made by Ben Bernanke, the chairman of the Federal Reserve.

More and more homes are going into the pre-foreclosure period and will eventually be listed under distressed properties. The best way to stop foreclosure is through realistic private as well as public-sector policies that should take into account the very fact that a traditional foreclosure avoidance strategy might not work very well in the current scenario as proposed by Bernanke.

Foreclosed homes and filings has led to auctions sale notices, and delinquency notices delinquency notices being issued and bank repossessions being taken. The first quarter of 2008 has seen a tremendous 112% increase in foreclosure and this is only going to get worse. Another solution to this problem is the short sale. If you are a first time homebuyer or even an investor then you can buy a home through a short sale and assist in stopping foreclosures. But if you are looking to buy different types of distressed properties then take a membership at and find the comprehensive foreclosure listings.