Finding a Foreclosure Fix

Foreclosure is a prominent problem that has had negative effects on the housing market and the country’s economy. It’s also something the current administration—as well as numerous organizations—is trying to fix as soon as possible. Just when it seemed everyone was on the same page in terms of finding a viable solution to the foreclosure problem, another proposed strategy has once again divided those responsible for making the laws.

Lawmakers in states where foreclosure properties have become a major problem are seeking to put aside over $250 million in funds in order to prevent yet another homeowner from foreclosing on their property and instead assisting them in dealing with their mortgage payments. Neither republicans nor the president for that matter seems to agree with this strategy and it may delay its review come next week.

Another item that has been criticized is the Federal Housing Association (FHA) due to what’s perceived as its inability to assist distressed homeowners in preventing their own home foreclosure. After promising last year to assist in refinancing more than 75,000 adjustable rate mortgages (ARM), results show less than 3,000 of them have actually been refinanced. While the FHA does recognize it hasn’t done all it could, not only will it continue ARM refinancing, it will also be assisting homeowners who are at a significant risk of defaulting.

The FHA should be playing more of a central role in helping to solve the problem that has affected markets across the U.S. such as Bellevue real estate. Instead of using up extra funds for yet another solution, the aforementioned strategy by state lawmakers should be put towards funding the FHA which many believe does not have the proper resources to address the unusual number of foreclosures or those potentially headed towards one. Regardless of whether you live in Bellevue or somewhere else in the country, what do you think is the best solution to the problem?