Foreclosures Decline in January 2009

The number of homeowners facing foreclosure has declined by 10 percent in January. This outcome is a big improvement compared to last year when nearly 275,000 people were on the verge of losing their homes.

Meanwhile, Fannie Mae and Freddie Mac appealed for a multi-billion bailout package to the government.

The number of homeowners facing foreclosure orders has dramatically declined in January by 10 percent which is considered to be a big improvement as experts said that this could have been worse.

Despite the dramatic decline, high-risked homeowners are still 18 percent higher compared to the same period of last year.

During the last month of 2008, it has been estimated that nearly 275,000 people were on the verge of losing their homes or have at least received a foreclosure notification order in December.

Some analysts believe that the declining number of high-risked homeowners is also due to the new policy of Fannie Mae and Freddie Mac, the two government-sponsored mortgage lenders, which postponed the foreclosure sales during winter.

Another contributor to the decline is that lenders in Florida agreed to Governor Charlie Crist’s petition which stated that lending firms should provide 45-day postponement before another foreclosure order is released.

Florida and California are the worst-hit states in the US that these two account for nearly 40 percent of foreclosed properties.

Few weeks ago, Fannie Mae said it needs $11 billion to $16 billion bailout package while Freddie Mac announced it needs another $35 billion federal support in addition to the $13.8 billion government aid it received last year.


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