subject: Are We At The End Of The Foreclosure Crisis - Perspectives On The Crisis? [print this page] If you spend any time at all listening to the financial pundits, you will hear them discussing whether we are at the end of the foreclosure crisis. Many state that the worst is behind us and that it is time to get back to business as usual and begin rebuilding the financial security of the nation's homeowners. Others point to the continued drop in home values and the number of Americans that are upside down in their mortgages. Another perspective is that, as long as foreclosure rates begin to drop, or at least not increase, we are on the road to recovery.
For the average American, whether they believe we are at the end of the foreclosure crisis or not depends greatly on their personal situation. If they are among the thousands of people who have been evicted from their homes and lost their jobs, the answer you will hear is a resounding 'No." However, in the last year, there has been an increase in programs available to homeowners that have proven to be effective in saving homes. Whereas bankruptcy used to be the most popular option to protect one's home from foreclosure, there are now different methods that can be used to prevent that as well.
It is not only the homeowner that wants to take action to help ensure we are at the end of the foreclosure crisis. Banks are more motivated than they have ever been before. In foreclosures, they run the risk of not being able to recoup the amount of the original loan amount due to the drastic devaluation of residential real estate. If the homeowner needs to file bankruptcy, they may not receive any of the funds at all and the balance will be written off. This makes it more difficult for them to write loans for potential new homebuyers.
New government legislation has made it easier for homeowners to get the assistance and time they need to stop the foreclosure of their homes. Home loan modification programs have been effective in saving homes and reducing the amount that a credit score is affected. Organizations that offer credit help and financial planning services assist the homeowner in adjusting to the new economic climate. The question of whether we are at the end of the foreclosure crises seems to depend on perspective. If you are having difficulty making your monthly payments and need assistance, be proactive and learn about the options that can help save your home.
