'Hope Now' Is A Shortie

The latest in the foreclosure fiasco is that "Bush administration-backed mortgage industry coalition, called 'Hope Now' has fallen short in stopping or lowering the number of foreclosures. In fact the glistening 'Hope Now' was suppose to turn around the economy and show a decline in foreclosures. But it did not. Actually, as it stands right now the foreclosures are forty-three percent higher this year than what it was this time last year.

Of the mortgages held by nine large banks foreclosures rose in March by 1.23 percent according to a new government report. In May the Real Trac report stated that one in ever 483 households received a foreclosure filing.

There are reports that foreclosures are likely to rise much higher towards the end of the year.

Meantime, some are doing the 'short sale', which means lowering the price of their homes to sell quickly. Some sales are lowered between $100,000.00 to $250,000.00. The good thing about this is that some mortgage companies are willing to forgive what is still owed on the mortgage after the sale. The bad thing is that you have to count the forgiven amount as income when you do your taxes. This is a loose, loose situation for the ex homeowner.

But it is a loose, loose situation for the surrounding neighbors, neighborhood, and sometimes the entire city. As homes continue to sell at lower than their value, it brings down the values of the homes in the community. I know because several homes sold in quick sales in my community. The bank told me that my home had dropped in value $250,000.00 because of someone Else's 'quick sale.' Leaving me and my home in the 'QUICK SAND OF DECLINING HOME VALUE.'