Government Foreclosure Homes for Sale
Rules of home foreclosure game is changing after rescue (bail out) package
U.S. Treasury's initial $700 billion rescue package will definitely reduce the number of home foreclosures. Homeowners who relied on Adjustable Mortgage Loans (ARMs) to become eligible for mortgage loan with insufficient income will be able to renegotiate their loans with banks.
Number of government foreclosure homes will not increase as it used to be: J.P. Morgan Chase (with acquired Washington Mutual), Bank of America, Wells Fargo (with acquired Wachovia), and some other banks received funds from the U.S. Treasury in exchange of their shares to freeze foreclosures for a certain (90-day) period and renegotiate mortgage terms. New fixed-term home mortgage loan program with lower payments will reduce the burden on homeowners currently facing foreclosure.
You may expect a slowdown in the number of government foreclosures within few months. However, it is doubtful if initial rescue package will be sufficient to prevent more foreclosures in the near future.
Posted: November 5, 2008 ...................................Post a comment
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