Awaiting Bailout, Several Big Banks Halt Foreclosures

Awaiting Bailout, Several Big Banks Halt Foreclosures.

The word foreclosure is a common word in many households in the United States. The struggle to make their mortgage payments are simply impossible. Some of the major banks are halting foreclosures while President Obama works diligently to help the struggling homeowner. Arizona is one of the hardest hit by foreclosures. Obama wants to insure that not only home owners in Arizona but other states are protected from having their homes foreclosed on.

Although lenders have attempted to help the struggling home owners, it hasn't stopped the housing recession. In 2008,the housing industry faced an 81% increase in foreclosures compared to 2007. President Obama wants home owners to have lower mortgages, which would force the mortgage industry to modify the terms of home loans. The home owner wouldn't have to be in default to qualify. It is amazing to think that 274,000 American households have received at least one foreclosure notice last month.

Government controlled mortgage companies such as Fannie Mae and Freddie Mac are determining the loans that are at least three months behind on their payments. Obama thinks that bankruptcy judges should be able to alter the terms of the loans.

I realize that the housing industry is in a trouble crisis. The question I ask is who is at fault? The home owner or the lender? These lending companies lend money to people they know can't pay. There are many people I know that have $1,400.00 a month mortgages, two car payments, and maxed out credit cards. I really think the fault lies in the hands of those that lend. Why would you lend that much money to someone you know can't pay?