The good news is that the rate of foreclosure is starting to slow across the country. After the last nearly four years’ worth of economic turmoil that started with the bursting of the housing bubble, it would seem that any slow down in the amount of houses being seized by lenders would be an unmitigated good; however, the reasoning behind the slowdown in foreclosures may be less than inspiring.
Up And Down
Many people are attributing the slow in foreclosures to the effectiveness of government programs that are designed to help struggling homeowners get back on their feet while rewarding banks that are sympathetic to the plight of those affected by the economic crisis, but the reality doesn’t seem so sunny. Experts are starting to say that the slow in foreclosures isn’t due to programs or the economy simply evening out, but due to the fact that banks and lenders are struggling to revamp their foreclosure procedures after flaws in both the operation of lenders and the government incentives were exposed last fall.
What this means is that we’re not quite out of the woods yet insofar as the foreclosure game is concerned, and we also haven’t quite figured out a way to best mitigate the problem. Even Fannie Mae and Freddie Mac are having issues – in fact, they’re not even participating in the government-sponsored initiatives at all, despite having been seized by the government.
The rollercoaster continues and it seems as though even good news can be painted as negative these days, but everyone is still hopeful that things will turn around soon!