Proprietors stripped with underwater loans or dealing with problems paying their mortgages could see some help from Uncle Sam negotiating with lenders and banks being sued by the Federal Housing Finance Agency.
Negotiations with the majority of the lenders have already begun, according to two highly placed federal sources. Conciliations could incorporate more than just big cash settlements with the lenders. The federal government has been asking lenders through the Barack Obama administration to raise the number of mortgage modifications with property holders at risk of losing their houses to foreclosure for years.
The court cases could stand for a turning point for the real estate market with the bankers as they try to work negotiations out with the FHFA. Bank of America, for example, as the nation’s largest bank reportedly has more than $1-trillion in customer assets.
Analogous contracts would also help to lessen the colossal number of foreclosures, which is forecast to increase over the coming months, reaching a total of 15 million homes through 2015. Over 7.5 million homes have been foreclosed since the crisis started as a result of bankers selling mortgages to anyone who could sign their name.
Some 73 million Americans are property holders and about two-thirds are mortgage holders, representing a gigantic voting block for President Obama. With little opportunity of the unemployment rate being decreased much before the next presidential election, the biggest way Barack Obama could influence voters is through the housing chaos.
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