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.

After President George Bush promted the House to vote for the bail out, the $700 billion financial rescue plan was rejected by the House of Representatives. The vote on the measure was 228 to 205. The vote went 40 minutes past the schedules time as supporters tried to persuade “no” votes in to “yes” votes, but it was not enough to change the minds of 95 Democrats and 133 Republicans. Supporters are looking to bring the plan back for consideration soon.

As a result of the rejection the stock market plunged more then 500 points. It is yet to be seen what effect this will have on all of the financial markets as well as homeowners.

Not ready to hand over a blank check to Treasury Secretary Henry Paulson, Democrats and Republicans alike are asking for provisions that would protect the taxpayers.

The senate democrats have also proposed a plan that would require the federal government to create “a systematic approach for preventing foreclosures and ensuring long-term, sustainable home ownership through loan modifications and the use of the HOPE for homeowners program.”

Chris Dodd, Senator from Connecticut who is also the Senate Banking Commitee Chairman has many hopes for the proposal. His proposal includes a change in the federal law which would allow judges to modify a bankruptcy filers primary residence mortgage, currently judge can only modify loans on second homes. Senator Dodd also wants to terminate the Treasuries authority to buy troubled by the end of next year.

Although this is a time sensitive issue, we can only hope that all interest are thought of, including those of troubled homeowners.

The housing crisis and the Presidential Election have to be two of the most talked about subjects in the news today, but really the question is how do they come together, more importantly what are the two presidential candidate planning to do with the foreclosure crisis?

Representatives from both sides explained different ideas for a solution. John McCain is looking at an FHA plan that is similar to what is already in place; it would be based around accountability. If the homeowner was issued an unconventional mortgage after 2002, they would have to report to FHA to work out a modification of sorts.

Barack Obama’s plan is to work on a state and local level. The representaive explained that there are a lot of senator, governors, etc. who have great ideas on how to work with their constituents. He would like to create a fiscal stimulus fund for a home foreclosure plan that would work with these state and local representatives.

There have been a slew of scams linked to the new and pressing foreclosure crisis. One such scam is targeting the elderly, the call shows up as coming from the Government and they are offering jobs they can do from home. The job would entail purchasing a list of foreclosures in the area, then simply finding information on the foreclosure properties and selling the list to others. They promise the profits will be 30- 35,000 per year, which can be an enticing offer.

This is only one of many scams which have surfaced from the foreclsoure crisis. Just remember if it sounds too good to be true then it probably is.

According to some experts, you shouldn’t expect your home to increase in value anytime soon. In fact in the next 12 months prices are likely to fall. Resdients of Stockton, California have seen such a large decrease in their home value, that they are likely to lose more then half of their 2006 value.

What does this mean for homeowners… Be sure that you are able to make your payments and that you have a fixed rate. If you fear you will not be able to make payments or have an adjustable rate, a loan modification is an option worth looking into.

The Federal Housing Finance Agency announced that the former CEO’s of Fannie Mae and Freddie Mac will not be walking away with golden parachutes. It was believed following the takeover of the two companies that the CEO’s Daniel Mudd and Richard Syron would walk away with large severance packages. The Federal Housing Finance Agency did not disclose the amount they would receive, or if they would receive anything at all.

Imagine that, CEO’s being held accountable for their actions. Now there is something you rarely see.

Four Democratic Senators are urging the Bush administration to stop Freddie Mac and Fannnie Mae from foreclosing on any homes for at least 90 days to allow some much needed relief for struglling borrowers, following the government take over of the two companies.

This temporary time out is being requested by Charles E Schumer of New York, Bob Casey of Penssylvania, Sherrod Brown of Ohio, and Robert Mendez of New Jersey. The idea was based off the freeze that the Federal Deposit Insurance Corporation placed on Indymac following their take over.

The move would allow more time to modify delinquent loans. Personally, this sounds like the only fair thing to do for these homeowners.

Two of the largest financial companies have been taken over by the federal government, in hopes of restoring some of the damage that’s been done, as these two companies play a large role in the countries financial structure.

It was announced on Sunday that the government would be stepping in, and as a result some homeowners may be able to breathe a sigh of relief. The take over will allow many homeowners to modify their loans more easily, and mortgage rates as a whole will fall, which may open a few doors to new home buyers.