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.

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.

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.

The Federal Reserve has sent without prompting a note to various financial committees of the Congress warning of imminent danger ahead. Three other top officials of the Fed have echoed the same view. The government’s covering up of inept handling of operations by zombie bank has led to the continuation of the crisis; the middle class is worst affected.

There are many factors explaining why foreclosures take place and where it happens. Race is one of the important factors apart from crime, income levels, employment picture, value of property etc. But research has shown that the White investors played an important part in concentration of foreclosures in Black neighbourhoods.

Florida today is quite different from what was when the previous presidential elections were held. The economy is crushed thanks to foreclosures and unemployment. The value of houses for nearly each single owner has gone down causing even those with jobs and houses to roll in for free meals at soup kitchens.