May 2008

Ever since the subprime mess started, the White House has been quite firm in its resolve to address the issue but not in the form of a bailout for mortgage lenders. President Bush believes that even though the economic situation is worsening, as a result of the housing and credit crisis, it is still not right to help these lenders and speculators who were responsible for the current problems in the first place.

In a reflection of the rising foreclosure rate in Iowa, the Consumer Credit Counseling Service of Northeastern Iowa is now saying that they have also received a heavy increase in the volume of calls they receive from homeowners in distress. Over the first quarter of 2008, calls to the CCSC have increased by over 20%, as foreclosures in Iow have risen slightly during the same time period.

A new foreclosure prevention group has been established in New Haven, CT to help homeowners learn about how to deal with default and ultimately avoid foreclosure and remain in their homes after the state became one of the more statistically foreclosure plagued states in the nation during the first quarter of 2008.

When the House sat down to vote on the contentious housing loan package, which involved $300 billion in mortgage loans, the results was not at all surprising. In an effort to minimize the damage caused by the subprime meltdown, lawmakers approved a plan this Thursday that will somehow help manage the enduring housing crisis.