Foreclosure-Relief Program Takes a Reverse Gear – Crisis Continues!

The mortgage-relief effort – Obama's flagship program for debtors – has failed drastically. Over 680,000 owners enrolled for the program and about 50 percent were disqualified. The reports came from the Treasury Department of USA. The critics are on flow, because of the report and they say that the rolling cart of foreclosure could not be stopped by this flagship program and that it is better for homeowners to give up their homes and let the property prices decline.

Professor of finance from the University of Mason makes a remark and says that the government is not in a position to solve a problem of this magnitude. RealtyTrac Inc. reports that since 2007 December, 2.5 million homes were lost to foreclosure. Whereas, Moody's Analytics reports that another 3.3 million are waiting with same fate due to distressed sale or foreclosure.

Though the recession came to an end after one and a half years in June 2009, the US economy has failed to get back its strength and stability, because of distressed sale and foreclosure. Properties have degraded in terms of value and the housing market has been shattered in various parts of US. The problem just seemed to be never ending, because the homebuilders are finding it difficult to compete with the property prices, which are heavily discounted. The potential sellers are also in a trauma and are afraid to put “For Sale” notice on their properties.

Despite the great promising aspect of Obama's flagship program, which was released in Feb 2009, it has been found that only 449,000 debtors received loan modifications permanently are living happily with regular payments. The figure may sound to be a huge one, but is actually a speck, because 1.3 million people enrolled for this flagship relief program. The major problems were that the banks were not equipped with the ability to handle huge phone call traffics and the borrowers were allowed to sign up for the program without any request of income proof from the Department of Treasury. Later, when the process became bureaucratic, people either failed to give income proof or moved out.

It is because of these reasons that the foreclosures continue to soar up and property prices continue to fall. This is good news for the potential homebuyers, as they can get new or preoccupied property at much lower rates. If you are interested in getting one such foreclosed property at a price that you never expected, come to ForeclosureDataBank.com and you will come across extensive foreclosure listings, which are most up to date and latest to be found anywhere else on the Web.