Fear is looming large about another wave of recession. It is even threatening Washington and New York. It would further push down value of properties. There are many risks in buying homes and thus many are opting for rentals. Banks are being accused of abusive foreclosure practices.

With much fanfare it has been announced that banks are sending letters to millions of previous homeowners. If they think they have been wronged they will get a chance to have their cases reviewed. But critics contend that the reviewers are sub-standard personnel incapable of dealing with complex legalities and there is no transparency as regards measuring compensation.

A new law in Nevada will give more protection to the house owners. The banks would have to give the information that they have the right to proceed with a foreclosure sale. The house owners will also have the right to see the data.

In the last week, lenders from different courts of the nation which are overcrowded with foreclosure cases gathered at a discussion session where they put up matters of bank honesty and attorney civility in foreclosure issues and estimated nearly 350,000 pending foreclosure cases in Florida.

Voters worried and resigned to foreclosure woes have little time to think about politics. None of the politicians have come up with any plausible solution; it is doubtful if they will. Obama has launched a new plan for underwater homeowners that have relaxed eligibility criteria but will it too meet with failure?

A closer look should focus on what happens to those who exit with their families from the foreclosed houses. Researches think that mortgage counseling should be accompanied by social advising. Also the government should be more proactive to help the struggling house owners so as to prevent further harm.

The biggest owners of shadow inventory are the government owned entities of Fannie Mae, Freddie Mac and FHA. There are indications that these agencies will be disposing of their units fast. But other financial entities are sitting on their units without taking action afraid of flooding the market.

NACA has sponsored an event in Hartford where face to face meetings would be held between the troubled borrowers, lenders and servicers. The target was to bring under control the persisting foreclosure problem plaguing Connecticut. It is anticipated that 5,000 borrowers will participate.