Frustration and Disappointment: Senate Hearing Reveals Dire State of Foreclosures in US

Despite numerous efforts and promises from the industry, the number of households facing foreclosure continues to soar, leaving millions of Americans without homes and struggling to make ends meet. At a recent Senate Banking Committee hearing, Chairman Christopher Dodd expressed his frustration and disappointment at the lack of progress in preventing foreclosures, citing a nearly 15% increase in households receiving foreclosure notices in the first half of 2009.

Key Takeaways:

Over 336,000 households received at least one foreclosure notice in June, a nearly 15% increase from the first half of 2009.
Homeowners are waiting an average of 6-8 weeks for a response from the National Foreclosure Mitigation Program.
Servicers and lenders are refusing to accept principal reduction, making it difficult for homeowners to build equity and get the housing market moving again.
50% of foreclosures are caused by a health care crisis in the family.
Many homeowners are being shuffled from voicemail to voicemail while trying to get help to stay in their homes.
The industry has failed to implement a system for measuring the progress of foreclosure prevention efforts.
The loss of a home is more than just a financial burden; it's a loss of a family's identity and a violation of the American middle class's promise of a better life.

Statistics:

336,000 households received at least one foreclosure notice in June.
50% of foreclosures are caused by a health care crisis in the family.
5,000 families in Bridgeport, Connecticut have subprime mortgages in danger of foreclosure.
Homeowners are waiting an average of 6-8 weeks for a response from the National Foreclosure Mitigation Program.
Foreclosures are costing homeowners at least $5,000 in value per home.

Sources:

[Associated Press, "Households facing foreclosure rising"]
[Federal News Service, "Hearing of the Senate Banking, Housing and Urban Affairs Committee"]