Expanding foreclosure in the U.S. by Lenka Filipova

An industry report form Monday showed an alarming result. More than one percent of all households in the United States are in danger to lose their homes as more foreclosures have been issued throughout 2007. Realty Trac, a research company, said that banks published more than 2.2 million foreclosures in 2007. This represents 75 percent rise when to compare with the prior year. Hence, this brings the information about the slump in the U.S. housing market. It seems that the plunge in the foreclosures is caused by the higher mortgages interest rate, resulting in the monthly payments. Another matter having effect is the repossession of houses and the "new" families do not have finances to deal with the servicing the house. This has forced the administration of US President George W. Bush to ensure that the mortgage plan would be remade, so that approximately $1.2 million will help to relieve the pressure made upon the households. Since 2006 there has been a downturn in Housing market continuing till this time. What is more, it is strengthen due to recent recession worries. In addition to this, the price of newly built houses is so enormous that is showing in decreasing the home prices as there is a surplus of unsold properties. As the Federal Reserve has noticed the foreclosure issue, it arranged a meeting in Washington to rethink the interest rate. The Federal Reserve is expected to cut interest rate once more as it did in September when it abated by a ¾ to 3. The biggest interest rates of foreclosures are noticed within states of Nevada, Michigan, California and Florida.

by Lenka Filipova for PocketNews (http://pocketnews.tv)

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