While the economy may be taking a turn for the better, the housing market is still on the edge four years into the housing crisis. While the Obama administration has attempted a various number of programs to stem the amount f foreclosures, it has not been able to make much headway. Some housing experts argue that the Obama administration should focus on getting the foreclosure process done more swiftly, in order to have those properties back into use, rather than awaiting a lengthy process and remaining empty and unused. 

    Some of the approximately 2.2 million loans in foreclosure can, in fact, be saved. However, many are so far gone that owners have not made a payment in more than two years on their loan. As stated in an earlier blog post, most owners go into denial and attempt to avoid the foreclosure process or appointment of a receiver. However, the consequences of that is that the process is severely slowed down. If the Obama Administration works towards a program that would push this process along more quickly the glut of vacant properties, and the effect those properties have on nearby home values, will be remedied. 

    Other experts advise that a good first step would be to sell off foreclosed properties that are currently owned by Fannie Mae, Freddie mac, and the Federal Housing Administration. Collectively, they own 248,000 homes which i 31% of the foreclosure inventory. Again, having such a wealth of properties that have been foreclosed upon that have not reentered the market takes a devastating toll on home values, which only succeeds on having more loans go into foreclosure. 

    Other experts do not agree that pushing people through the foreclosure process swiftly is a good solution. Some say that there are many homeowners who can be saved if their payments are adjusted, stating that foreclosure is too destructive to value to allow so many homes to go into foreclosure. 

    The Obama Administration, then, has many options before it, and many decisions to make, in hopes that it can resolve the four year old housing crisis. 

For more information please see Tami Luhby, "How to rescue the housing market: Foreclosures!" Available at http://money.cnn.com/2011/08/31/real_estate/housing_market_foreclosures/index.htm?iid=HP_LN

Cordially,

Meghan E. George, Esq.

HARTNETT LAW GROUP