Thursday, May 28, 2009

Real Estate Investing: Why The Up Tick in Foreclosures?

Hello All:

You may be asking yourselves why foreclosure filings are accelerating again? The answer is simple; when President Obama took office in January of this year, most mortgages companies place a moratorium on foreclosures. What this means is that until they figured out what he was going to due about a potential rescue plan for home owners, the best course of action would be to place everything on hold.

Now that the President has revealed his plans, the moratoriums have been lifted and the foreclosures have resumed. Truth be told the President's plan hasn't really helped the majority of individuals facing foreclosures, due to the fact that it is a voluntary program for the banks and mortgage companies.
In my humble opinion if they wanted to really help people facing foreclosure they would have passed the "Cram Down Provision" which would have allowed bankruptcy Judges to decide the fate of individuals facing foreclosure.