Many industry experts like Blomquist believed that the market was going to be overwhelmed with repossessions ever since a $25 billion mortgage settlement was reached in April. In this case, the government stopped lenders around the country from making any loans to customers in order to place their procedures under great scrutiny after the "robo-signing scandal" came to light in September 2010. By settling this situation out, lenders are now able to proceed to do their jobs again as they now lay out clear and specific guidelines on how they could go after borrowers who had missed payments. This result created a fear for an increase in repossessions as mentioned earlier, but in reality, the process has had a much more "managed" flow which is helping to control the number of foreclosures.
Part of the reason why the number of foreclosures is steadily falling is due to the government's and banks' efforts to prevent homeowners from falling into foreclosure have taken hold. For example, the Home Affordable Modification Program, which is sponsored by the government, has helped more than a million borrowers obtain more affordable mortgages. In addition, banks have been refinancing people's loans in an added effort to keep delinquent borrowers from falling into foreclosure. Lastly, the record low mortgage rates have helped struggling borrowers stay in their homes for longer periods of time. By refinancing their mortgages to lower rates, borrowers can greatly reduce their payments and help them avoid defaulting on their loan.
Overall, the number of foreclosures are finally beginning to steadily decrease to the point where analysts can believe that the housing market has finally turned the corner and is on its way back up. I believe that the government is doing their best at handling the situation as it shows from the decrease in foreclosures and improved guidelines being created and implemented by lenders in order to avoid another major fiasco like in September 2010. By stepping in when they had to, they were able to take control of the situation and get things back in the right direction. It may have been a slow process at times, but the results are beginning to show, which can only mean brighter days are coming soon for all of us as we continue to push through the current economic state.
Overall, the number of foreclosures are finally beginning to steadily decrease to the point where analysts can believe that the housing market has finally turned the corner and is on its way back up. I believe that the government is doing their best at handling the situation as it shows from the decrease in foreclosures and improved guidelines being created and implemented by lenders in order to avoid another major fiasco like in September 2010. By stepping in when they had to, they were able to take control of the situation and get things back in the right direction. It may have been a slow process at times, but the results are beginning to show, which can only mean brighter days are coming soon for all of us as we continue to push through the current economic state.
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