In York County according to notices in York Dispatch there are 268 houses up for sheriff’s sale. Not too long ago that many sales would not have been posted in one year. Thus it is clear that the various programmes initiated by the federal government to help people wiggle out of foreclosure are not working – it is not worth a cent.

Over one year ago the federal government was determined to be of assistance to the troubled borrowers – especially those that had been slapped by the recession and having difficulties to run their monthly mortgage payments. By taking various measures the beneficiaries turned out to be the banks and the mega financial entities. The latter were given dollars on the understanding that they would help to slow down foreclosures.

By and large the plan has not worked. If the number of York is taken as a yardstick then in a day there are million or more foreclosure auctions across the country.
Washington has come forward with yet another solution but it seems to be the same old wine in new bottles – throwing money to the lenders. It expands its plan of relief by providing more subsidies to the lenders who are agreeable to forgive part of the original loan and modify the secondary mortgages.
The idea is weak because a good number of homeowners cannot be helped anymore. They have given up the mortgages that they never could have afforded and had absolutely no chance to keep up with. Thus it is not logical to save these loans because the only way this is possible is to extend the period to 40 years. This will enable the monthly payment to come down to affordable levels.

The only other way out is for the lending institutions – the guys who originated the toxic loans in the beginning because of either greed and or faulty judgment to accept a part of the blame and thence some of the consequences by writing off the difference between the loan due and the current market value of the property.

For instance a property valued at $100,000 having a mortgage loan of $125,000 for a borrowers whose income is less than $40,000 annually is a hopeless case unless the lender is willing to come in and admit that this loan should never have been contracted in the beginning.

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