According to the Web site Foreclosures.com, foreclosures throughout the month of January fell more than twenty-five percent from December 2008 to a total of nearly 73,000. This is the lowest rate since April of last year.
The U.S. office of Thrift Supervision informed the savings and loans which it regulates to curtail foreclosures on all owner-occupied home until the plans of the economic stimulus package are finalized and details of plans to assist home owners in the reduction of loan payments are outlined. The new plan is anticipated to limit monthly mortgage payments to a bit more than thirty percent of income. The previous level is set at 38%. Restructuring of payments will now be available to home owners who are current in their loans but in danger of becoming delinquent.
In the meantime, Moody's Economy.com web site predicts that a total of 1 1/2 million additional homes will be lost to foreclosure throughout 2009. This reflects an increase of over nearly 1 1/2 million lost in 2008 and just 3/4 of a million throughout 2007.
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