Homeowners have become s more and more creative with saving their homes. Angela Logan of Teaneck, New Jersey started selling her apple cakes which she now calls mortgage apple cakes in an attempt to save her home. Angela has now sold enough cakes to make her mortgage and business is taking off; she has orders all over the country and even from soldiers in Iraq.

Recently USA Today reported that foreclosures have gone through the roof. Obama’s $75 billion plan to reduce foreclosures was introduced several months ago, and since then has led to offers of more than 190,000 loan modifications. Many homeowners have complained that they have not received return phone calls and the information that has been given was inaccurate.

An economist Joe Nardoff said, “Some lenders may not be turning (homeowners) down right away because it might be politically easier to push them off or delay.”

The demand for assistance is bound to grow as people continue to lose jobs. Lenders say they are doing their best, it is clear that there is a lot more work to be done.

Oregon’s foreclosure rates have seen a huge increase in the last year. Since May of 2008 the rates have gone up 90%. This leaves Oregon with the 12th highest foreclosure rate in the Country.

One in every 525 Oregon homes recevied a foreclosure filing in the month of May. Vermont is still the best off, having only reported 6 foreclosure last month. They have the lowest foreclosure rate in the U.S.

The Obama Administration is looking to expand their $50 billion plan with a new program which will help people facing foreclosure by allowing people to modify their second mortgage or piggyback loans.

Much like the other plans they are offering cash incentives to lenders who agree to reduce the monthly payments or forgive the loans entirely.

Millions of home buyers took out second mortgages to purchase homes with little to no down payment or to pay home improvements, but those second-lien mortgages have to be negotiated separately. This often makes it more difficult to modify primary loans. This could be a good step forward for home owners.

The Obama administration has promised to take on the overwhelming number of foreclosure scams that have cropped up all over the U.S. There are already many open cases being investigated, and they are putting the word out to people who may be in danger of this scam

According to LATimes.com “Illinois’ Madigan said the surest way to identify a potential scam artist is if the company asks for a fee up front after making big promises about being able to get a homeowner out of trouble. Such fraud has gone on for years, Madigan said, and Illinois, along with Maryland and Minnesota, are on the forefront of prosecuting cases and enacting laws that prevent mortgage assistance companies from collecting fees up front.”

Foreclosures continue to rise despite the large increase in numbers of loan modifications. In February nearly 250,000 homeowners received either loan modifications or repayment plans from their lenders according to Hope Now.

In the month of February construction on new homes increased 22% unexpectedly. This was following an 8 month fall, it was the first time home construction increased since June when it rose 11 percent.

The housing construction increase last month was mainly due to the rise of multi-family homes, which counted for 80% of the construction.

February proved to be a tough month for homeowners as nearly 208,000 notices of default were sent out. This is the highest foreclosure rate for one month since the foreclosure crisis began.

In Los Angeles there was a 60% increase if foreclosure filings in February, which is a major sign of increased job loss.

Sheila Bair the FDIC Chairman has proposed a way to reduce foreclosures, and the proposal is beginning to win approval from the Obama team. Senator Dodd of Connecticut, who has made the housing crisis a priority of his has said, ” the proposal has gained traction… but it isn’t settled.”

The proposal could potentially prevent 1.5 million foreclosures by rewarding participating lenders by sharing the cost of defaults and modified loans.

After a year or more of more or less allowing homeowners to lose their homes to foreclosure, banks have begun too take the steps to decrease this reckless trend by giving homeowners a little break and making some modifications. Last month lenders helped to prevent 239,000 foreclosures by modifying existing loans and placing a freeze on foreclosures through the holidays.

There is a concern that with an increase of unemployment that these loan modifications won’t help, as people will be unable to make any payments.