The Congressional Oversight Panel released its March Oversight Report, The Foreclosure Crisis: Working Toward a Solution.
Like the crisis in the banking system, the foreclosure problem has grown so large that it threatens the entire economy. Foreclosures are depressing housing and commercial real estate prices throughout the country, imposing costs on those who are not even a party to the mortgage transaction through lower tax revenues, increased crime and depressed home prices.

The Emergency Economic Stabilization Act of 2008 required the Panel to look into the current state of the foreclosure crisis and gauge the adequacy of current programs to address the crisis. The Panel’s report examines the causes of the foreclosure crisis and the impediments to its resolution and develops a checklist that provides a roadmap for foreclosure mitigation program success.

“The foreclosure crisis seems to be getting deeper every day. Despite everyone’s good intentions, nothing seems to be working. The Panel wanted to examine why this was the case,” said Elizabeth Warren, Chair of the Panel. “We looked at the causes of the crisis and the impediments to sensible foreclosure mitigation. We were able to create a roadmap for policy makers to use to create successful programs to address this crisis.”

The Panel’s roadmap can be used by those who are developing programs to address foreclosure mitigation whether they are local, state or federal policy makers or private groups looking to help. Any successful program to address this crisis must address the following issues:

• Will the plan result in modifications that create affordable monthly payments?
• Does the plan deal with negative equity?
• Does the plan address junior mortgages?
• Does the plan overcome obstacles in existing pooling and servicing agreements that may prevent modifications?
• Does the plan counteract mortgage servicer incentives not to engage in modifications?
• Does the plan provide adequate outreach to homeowners?
• Can the plan be scaled up quickly to deal with millions of mortgages?
• Will the plan have widespread participation by lenders and servicers?

“By identifying current impediments to successful foreclosure mitigation efforts, the Panel hopes to advance efforts for sensible modifications that will help put the American family and the American economy back on a strong footing,” said Warren.

This report also includes an initial assessment of President Obama’s Homeowner Affordability and Stability Plan, and outlines the extent to which it addresses many of the impediments identified in the report.

The Congressional Oversight Panel was created to oversee the expenditure of the Troubled Asset Relief Program (TARP) funds authorized by Congress in the Emergency Economic Stabilization Act of 2008 (EESA) and to provide recommendations on regulatory reform. The Panel members are: Congressman Jeb Hensarling (R-TX), Richard H. Neiman, Superintendent of Banks for the State of New York, Damon Silvers, Associate General Counsel of the AFL-CIO, former U.S. Senator John E. Sununu (R-NH) and Elizabeth Warren, Leo Gottlieb Professor of Law at Harvard Law School.

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The U.S. real estate market is facing now the most dramatic period of decline in the recent decades, based on the decline of the demand, the multiplication of cases of foreclosures and growth of stocks, according to International Herald Tribune. Sales of new homes fell last year by 26%, the most drastic decline from the beginning of monitoring sales in 1963, according to U.S. Department of Commerce.

Moreover, the National Association of Realtors announced that sales of foreclosures for sale for a single family, representing a significant proportion of the residential market, have recorded the largest annual decline for the past 25 years. Meanwhile, the average price of those homes fell for the first time in at least the last four decades.

Some economists predict that the market could begin to recover in summer, while others are less optimistic. Only in a month time, new housing sales have recorded a decline of 4.7%, to an annual rate of 604,000 units, the lowest monthly figures recorded since February 1995.

Prices also fell dramatically. In December 2007, the average price of new houses reached 219,000 dollars (148,000 Euros), decreasing by 10.9% compared to December 2006.

The report on sales of new homes in December is terrible, according to Dimitri Fleming, an economist in the ING Bank. December 2007 marked the end of an extremely difficult year for real estate builders, as they assisted to a drop in demand, in the conditions in which customers give up contracts or stay in expectation. On the whole year, the average price of new homes rose by only 0.2%, up to 246,000 dollars (167,000 Euros).

Because of the foreclosures and of the difficult credit conditions, obtaining a mortgage has become more difficult even for customers with a solid credit history. Meanwhile, banks have limited their lending activities restricted after the crisis of the U.S. sub-prime mortgage. Now, manufacturers try to attract buyers reducing prices. They have restrained at the same time construction activities for new housing.

This strategy has not yet led to a fall of stocks. Sales of new homes fell in most regions of the country, the most severe decreases being recorded in the regions of south and west. The Northeast witnessed a slight sales increase. The Department of Commerce revised estimates relating to sales of new homes, up to an annual rate of 634,000 units. Initial estimates indicated a rate of 647,000 units.

The foreclosures crisis hits real estate buyers of the rich homes in Manhattan. Manhattan residents, the luxury business neighborhood in New York business where it is established the stock exchange on Wall Street, start to feel more and more powerfully the effects of the foreclosures crisis in the United States.

If some time ago, wealthy officials, and bankers who work here were almost hunting some of the most expensive apartments in New York, with the worsening of the foreclosures crisis in the U.S. they have become a kind of outcasts of the real estate market in Manhattan, according to The International Herald Tribune.

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If you are facing foreclosure then you need to find different ways that would help you to get rid offoreclosure procedure. If you want stop the foreclosure then you need to sell your house as soon as possible. This way you would be able to sell the house at desire price and would be able to earn huge profit in short duration of time. If you want to sell your property then you need to sell the property before the procedure of foreclosure. This way you would be able to take the necessary steps that would help you to avoid the procedure of foreclosure.

The success of the effects to stop the procedure of foreclosure would depend on your ability to get rid of foreclosure procedure. You would find that there are many banks and lender would be ready to provide you necessary guidelines about the ways that would help you to stop foreclosure and save your property from foreclosure. This would give some relaxation to the owner of the property. It would also remove some burden from the owner. If you sell your property before the foreclosure procedure then you would be able to save credit from becoming bad in the market of foreclosure. This way you would be able to save your house and your credit.

If you have decided to sell your property then there are some points that homeowners need to remember and keep them in their mind. The following are some important points that would help you to sell your property before the foreclosure:

Set the rational price of the property:

You would have some difficulty in setting the rational price of the property. If you want to sell your property then you need to show your loan amount and you also need to show the profit that you would make after selling the property. You should try to go for the full appraisal value. This way you would be able to make delay in the foreclosure procedure.

Market your sale procedure properly:

There are different types of houses in the market. But if you want to sell your house then your advertisement should be eye pleasing and should attract the attention of the potential buyers. You should also improve the internal structure of your property. You should take right steps to appeal the surrounding people.

Work with professional real estate:

If you want to stop foreclosure then the best way is to work with the professional real estate agent. They have the best skill for selling the property and they would help you to get the attractive deal for your property.

If your property is not facing the foreclosure then these agents would try to sell your property at the market price. These are the some ways that can help you to stop foreclosure.

But if you want to stop foreclosure then you need to know the basic concept of foreclosure that would aid you to get the desired fruits in short duration of time.

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