Foreclosure Rescue Plans Continue To Elude Many

The schemes that the US Treasury Department has come up with are not comprehensive enough. A big chunk of house owners, under the cloud of foreclosures, are left out of its purview. Despite clauses and concessions this group will not be able to afford the refinancing. Something has to be done for them – after all they are not speculators but families who want to keep their home fires alight in houses they own.

Treasury Under Secretary Robert Steel is anxious to help them. He feels that a little of adjustment here and there will be able to accommodate them so that they are not knocked down by the lashes of foreclosure. On this issue Steel gave a speech addressing the New York City sub-prime lending and foreclosure summit. He outlined the latest plans of the Treasury to subvert the foreclosure crisis. It notes the announcement made last week by President George Bush after discussing with the private sector about making modifications and refinancing being made easy for borrowers. Steel is optimistic that the new policy will make it easy to locate the borrowers who qualify for this help. Once that is done then resources will be freed and the servicers will be able to give their attention to this hapless lot. The line of action will also hasten the process of evaluation. The latter is very important particularly in the face of a wave of resets about to attack within the next year and a half. Steel however admitted that no total cure can be found for the foreclosure malaise but it will push the real estate market towards stabilization, which in turn will have its impact on the broader financial markets as well as US economy.

The palliatives offered by President Bush are being received with caution. Many criticize that this will only postpone the crisis – keep it in abeyance. It is a far cry from a basic solution. Others say that something is better than nothing. It will help and prop up the real estate market to stand on its own feet and start functioning. Once the ball starts rolling the market will find its own bearings. But things have been allowed to drift too far. Many have already been thrown out. The socio-economic picture is grim. Scapegoats are being beheaded. America is in a state of turmoil as the dollar falls.

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