It is feared that the countries foreclosure crisis is going to play an unwanted role in this upcoming election. In the plast two years, more then one million people have lost their homes. With voter registration being based on peoples residence, many could face challenges at the polls.

Some of the hardest hit states in the U.S. are also battleground states in the Presidential race. Ohio, Florida, and Michigan for example have all seen huge numbers of foreclosures, which could be refected in voting numbers and could dramatically change the outcome of the race. Hopefully, a prevalent issue in the Presidential race and the state of our country doesn’t end up phycially changing the results.

More and more Americans are losing their homes as foreclosures continue to reach all time highs. Tracy was about to be another American starting from scratch, her house was up for auction after failing to make the payments following the loss of her job.

Tracy decided to attend the foreclosure auction in hopes of finding closure, that is when she met Marilyn Mock, Marilyn was there looking for an investment property when she noticed Tracy in her emotional state. After hearing her story she decided she needed to help. Marilyn bought the foreclosed home for Tracy and her family. She said she will workout some sort of plan with her on a later date.

Charles E Schumer watching out for homeowners

Today the Seante met to urge bail out officials to do more to help struggling homeowners avoid foreclosure. Many senator feel that the bailout is doing too much to the banks and not enough to help the homeowners.

Charles E Schumer a Democratic Senator from New York said they have been giving the banks “a little too much dessert and not making them eat all of their vegetables.”

Officials involved in the bailout argue that they are reaching out to homeowners. But Senator Dodd says the system is designed to fail. We’ll see if the rescue plan does everything it was meant to do.

Governor Jon Corzine of New Jersey has proposed a stimulus package that includes foreclosure aid. The specifics have yet to be drawn out, but on Meet the Press, Corzine said he would like to help community groups purchase foreclosed homes in attempt to protect neighborhoods that have been hit hard by foreclosure.

In addition to foreclosure aid he wants to create 30,000 new jobs with investments in solar and wind energy. His plan also includes school and highway construction. Just another example of a state heading in the right direction.

Homeowners are not the only people who are effected by foreclosures, many renters have fallen victim to the crisis as landlords fail to tell their tenants that the property will be foreclosed on. Renters in Chicago can breathe a small sigh of relief because under a new law renters in Chicago are entitled to a 90 day grace period prior to being evicted, the 90 days takes effect when the foreclosure sale is confirmed.

Chicago’s Sheriff Thomas J. Dart of Cook County announced last Wednesday that this law would be enacted. They felt that there were a lot of renters being evicted who had no idea it was in foreclosure and they were often dutiful tenants who paid their rent every month. Again local government taking steps in the right direction and helping the people who are hurt the most.

An article published in the New York Times on September 30 1999 described the new business Fannie Mae would be venturing into. They explained they would ease the credit requirements in order to increase homeownership rates amount minorities and low-income consumers. This came after mortgage companies pressed Fannie mae to help them make loans to the “so called sub-prime borrowers.” If only they knew what we know now…

Well, some people did see it coming. Peter Wallison a resident fellow at the Americna Enterpirse Institute said, “If they fail, the government will have to step up and bail them out…”

Homeowners in Philadelphia are given a second chance, as it is now required that lenders set up a visit with homeowners prior to carrying out the foreclosure process. This move was set in place by the city of Philadelphia in hopes of decreasing the number of foreclosures. So far the program has been successful with more then 75% of homeowners who were facing foreclosure have now been able to work out either a payment plan or a loan modification that allows them to keep their home. Perhaps more cities will follow Philly’s lead.

Relief could be on it’s way for may homeowners facing foreclosure. Both the House of Representatives and the Senate voted to approve the bailout, which gives the Treasury Department the ability to spend $700 billion to help back financial markets by purchasing their assets.

Law makers are hopeful that some provisions in the bill will push loan servicer’s and investors to offer affordable deals to homeowners seeking to save their homes.

The Treasury Department will be buying toxic mortgage assets from financial institutions, the law states that the Treasury Department will be required to “maximize assistance to homeowner” and encourage mortgage servicer’s to modify loans through programs such as Hope for Homeowners.