America’s foreclosure crisis has now claimed approximately 10 per cent of all homes with a mortgage.
According to the latest data by Mortgage Bankers Association, five million American homes have been foreclosed since the Global Financial Crisis, and another four million are under threat.
While the Obama administration is working with banks to head off future defaults and stanch the foreclosure wave by modifying mortgages, the federal programs have so far disappointed.
The Home Affordable Modification Program, for example, was launched in the summer of 2009 with the intention of modifying three million to four million loans. So far, it has provided permanent help to fewer than 450,000 struggling borrowers.
According to a statement by the Mortgage bankers Association, the foreclosure crisis looks set to continue over the foreseeable future.
However, with every cloud there is a silver lining. Many families that were locked out of the housing market during the boom can now afford to buy.