The Current State of Real-Estate Foreclosure

The current housing market in the US faces serious issues with the continued growth in foreclosure rates across the nation. The foreclosure crisis has steadily increased over the last year, reaching rates that are more than 70% greater than the previous year’s state. It has become a major focus in the private sector as well as the public sector, with reators looking for solutions and the government attempting to bring assistance to the crisis.

The Federal Depertment of Treasury originally stated that it would use part of the $700 Billion bailout plan to purchase troubled assets from banks across the country. Now, Treasury Secretary, Henry Paulson, has stated that such an endeavor would take too long and allow the current situation to worsen. As an alternative, the Treasury wants to buy stakes in the banks in order to promote regular lending practices and prevent a credit crunch in the housing market.

Florida is currently preparing to recieve over $160 million in federal grant aid to stimulate the housing market. This should help stunt the recent spike in foreclosures in counties, like Miami-Dade and Broward, where rates ranged from a 9% increase (Broward) to a 159% increase (Miami-Dade). With Florida having two cities in the nation’s top foreclosure list, in Miami and Orlando, there is hope that this aid will help aleviate the recent struggles felt throughout the state.