According to a Treasury Department report, the largest U.S. banks have found it more difficult to meet demand for loan modifications than their smaller rivals. As stated by a U.S. Treasury official, the pace and effectiveness of the government’s anti-foreclosure programs has been limited by the inability of some mortgage servicers to keep up with demand.

David Sisko, the head of default management services for Deloitte & Touche LLP said that the Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. are likely to show the poorest levels of homeowner assistance among the 31 companies participating in President Barack Obama’s $75 billion loan modification program. The government said it wants to clearly show the companies that are doing the most to help.

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Increased unemployment is becoming the major cause of foreclosures. Obama Administration’s plans to keep people in their homes are shattering at their best. shattering with them are the dreams and hopes of millions  who want to see an  end to housing crisis and rebound  of nation’s failed economy.

Experience tells us, that in past few recessions, it was the real-estate sector that triggered all the right area’s of economy to stimulate it back to normal. real-estate industry helped in increasing production, creating jobs and spreading wealth. In all the previous recessions, investors jumped in at right time to take advantage of lower prices but no such miracle is happening this time around.

Even the consumers with good credit standing, who got themselves locked into fixed rate mortgages ,are finding it difficult to make their mortgage payments as things have changed for them. most of them are jobless now. Foreclosures are likely to increase in numbers and home prices will go down even more.

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Many people face financial constraints in their lives and are often burdened with loans. They may seek a way out of their debt to ease their problems. Debt consolidation services help them to minimize their debt and can erase debt in a fast, efficient way. A Debt consolidation loan is where all outstanding debts and bills are combined into a single loan or mortgage account. Debt consolidation takes the place of multiple existing loans and bills with a single consolidated loan from a new single lender so that there is a lower monthly installment which is allocated for a longer period of time.

Debt consolidation can be done to combine several unsecured loans into a single unsecured loan. It mostly takes in a secured loan by keeping an asset in the form of property, house or car as collateral. If the collateral is a house, the mortgage is secured against the house. By doing this, the borrower shows his consent to forced sale (foreclosure) of the property if the loan is not paid back which enables the loan to have lower interest rate,. With collateral, the risk factor for the lender is considerably reduced.

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Defaults and Late payments on home-equity loans and credit cards are climbing to the highest levels. According the the American Banker’s Association the figures are alarming and disturbing.  The worst hit area is home-equity loans. If this trend continued, it has a potential to develop into a major credit crisis in near future.

How This Happened?

In my opinion availability of cheap credit and rising house prices during early part of this decade created a window for home owners to take home-equity loans. Consumers were literally treating their homes like they were liquid assets (cash in bank or ATM). They were buy consumables and services(insane). All was well until the home prices started going down and down. The market collapsed and the consumers were left in pile of debt.

The data shows that default rates on home equity loans have climbed to more than 3.5 percent in first quarter of 2009. The late payments on credit cards is also touching 2% levels. This is a big jump compared to the figures this time last year.

One in 9 American is Jobless

The major contribution in this mess is Un-employment. According to official data, every 1 in 10 person is out of job. This is national average. there are states where every 1 in 8 people is out of job. worse thing is that is just a beginning. Job losses will keep on rising and people’s ability to pay their bills will come to a grinding halt.

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People around the world are experiencing the worst global economic recession. This is particularly a very difficult time for those who have mortgaged their assets. Number of people facing foreclosure is growing at such an alarming rate that a foolproof rescue plan must be worked out to save such people from collapsing economically. The strategy that I am going to discuss may prove to be a ray of  hope for such people who are in serious trouble due to their mortgaged assets and are facing the risk of  foreclosure. Much has been written about this technique earlier but now seems to be the most appropriate time to remind people of this technique, so that they may save themselves from facing this disastrous situation. According to the AP’s estimate, last year, the total number of people that were subjected to foreclosure was around 2.3 million. This is indeed an astronomical figure.

Past decade has seen a great business activity in real estate sale and purchase. Huge investments were made in real estate business. Mortgages were excessively sold and purchased without paying any attention to the credibility of the business deals. They were given in security to the investors without establishing the authenticity of their ownership documents. This reckless business activity in real estate business led to many legal complications. Many such cases were noticed, where the original document signed by the homeowner was almost impossible to trace. It was either lost, destroyed or was lying at such a place that it was near to impossible to retrieve it. Producing those documents, in the court, that are either difficult-to-trace or are extinct may, at least, pose some delay in foreclosure. Though this cannot totally avert this difficult situation, however, this may help the homeowner buy some time and may force the lender to renegotiate the mortgage.

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With the entire nation’s eyes on the real estate market, the analysts and the media these days are keeping a very close eye on how the mortgage and sales market is faring in every region of the country.

For the sixth consecutive month in February, home sales in Florida showed an upward trend, compared to the same period a year ago, according to the data released by the Florida Association of Realtors® (FAR). And what’s more is that the February figures outranked those of January even, in both home and condo sales.

It has been noted that 9,858 homes were sold statewide last month, compared to 8,181 in February 2008 – an increase of 20 percent. Even on a monthly comparison, February’s statewide sales soared by 16.7 percent, compared to January 2009.

As far as condos are concerned, according to Florida Realtors, a 15 percent gain has been recorded in condo sales. This reflects the continuing trend of higher sales of both existing homes and existing condos, compared to the figures of the same time period in 2008. A jump of 25.1 percent was recorded for statewide condo sales over the number of condos sold in January alone. Read the full story