Last April the federal regulator ordered 14 mortgage servicers to engage independent agencies to review the foreclosures taken on owners of primary residences during 2009 and 2010 for finding out any wrongdoing. Considering the volume of work and its complexity the agencies have asked for extended time.

Zuccotti remains the focal meeting point of the OWS activists. Since they cannot camp overnight in public spaces they are seeking shelters in some churches in an organized manner. Committees have been formed to pay for utilities, cleaning up and security. Those seeking shelter here have to enlist themselves. Churches will offer hospital through winter.

New York State’s foreclosure help programmes are facing fund cuts following budget cuts. A new unit set up will not be sufficient to handle the volume of work. Foreclosure Prevention Services Program that started in 2008, following the onset of the crisis, will be discontinued.

Moody’s has predicted that this year there will be less risk coming from sub-prime mortgages as the weak borrowers have been weeded out. But there is the danger from strategic defaults emanating from Alt-A and option-Arm loans because of staggering increase in underwater mortgages.

Since the introduction of a new legislation the numbers of foreclosures have gone down dramatically in Hawaii. The legislators want that more steps should be taken during the next session so as to widen the range of protective coverage for the troubled homeowners. The focus is on fraudulent advertisements misleading desperate homeowners.

Despite application for federal government foreclosure prevention programmes and counseling from HUD accredited counselors being free, many troubled homeowners are being duped by bold advertisements over the Internet and media with false promises of getting loans modified. Ultimately the victims lose not only heavy amounts but also their houses.

While house ownership numbers are falling the numbers or rentals are increasing. The demand is causing activity in the housing sector but mostly in the multi-family segment. Unemployment and foreclosures continue. People prefer to pay rent rather than mortgage dues.

There is something inherently wrong with the government foreclosure prevention programme because of the defaulting house owners 80% are not eligibility. To make the programme a success the conditions for eligibility will have to be widened.