Obama: Hope of Foreclosure-Troubled Americans

by Donald Hanz on Foreclosure Help

The year 2008 was full of distressing events for Americans and for most other people in the world. Record numbers of homeowners across the country were forced out into the cold after their homes were put into foreclosure.

Where did it begin? It began when times were good and money was flowing. Flush with cash, lenders offered mortgage loans to anyone with something to pay the first payment with. When the oil prices shot up and the monthly payments rose, the U.S. subprime mortgage market fell into the bottommost pit, bringing with it the entire mortgage market, the housing market, the financial market and ultimately the U.S. economy.

With the U.S. economy down, U.S. imports and foreign outflows fell, causing economic declines in many countries that export principally to the U.S.

By the tenth month of 2008, as reported by the Mortgage Bankers Association, one in ten mortgage borrowers had been behind in payments or had been in foreclosure. By the last month, as estimated by the bankers, more than two million Americans had lost their homes to foreclosure.

Meanwhile, the financial multinationals that bought and sold mortgage debts and all other kinds of debts and the giants of business that previously appeared to be impregnable succumbed to the mortgage plague. AIG, Citigroup, Bear Stearns and many other banks needed to be rescued with cash injections from the taxpayer fund.

What then is left for the American homeowner? Hope.
The ordinary homeowner hopes that with Barack Obama’s assumption of the U.S. presidency on January 20, 2009 comes a fresh start to rebuild ruined financial lives. During the presidential campaign, Obama pledged that one of his first priorities as president would be to help millions of American homeowners avoid foreclosure. Now that he has been elected, he has the year 2009 to bring to realization the homeowner’s hope.