The Mortgage Crisis- Can Foreclosure Prevention Centers Help?

All over the country the mortgage crisis is spreading across homes of all different socio-economic levels.  Because of this, the number of foreclosed homes is skyrocketing and homeowners are being left to fend for themselves.  What’s the solution here? While government regulation can help, it seems education and awareness might be the only real answer to the problem.

Several state and communities are battling this problem with education and awareness programs called Foreclosure Prevention Centers.  The support of Congress and President Bush was apparent with their approval of the American Housing Rescue and Foreclosure Prevention Act in July 2008.

 Recently, RealtyTrac reported that on average, one in every 171 households received a foreclosure filing during July 2008.  These startling numbers lead us to another dismal thought- the neighborhood blight created by abandoned and run down homes.

The purpose of the Foreclosure Prevention Centers is to help homeowners whose homes are being foreclosed or are at risk for being foreclosed and to educate new homeowners about adjustable rate mortgages and mortgage terms.

Hopefully prevention can do the trick- because the mortgage crisis and subsequent foreclosures not only leave homeowners without homes, and neighborhoods in states of ruin, but can also greatly depreciate the value of the property residing next to a foreclosed home.  In the end- we are all at risk.

If you are homeowner in danger of loosing your home or know someone who is, check out this Housing and Economic Recovery FAQ Sheet.