As the real estate market continues to go through an adjustment period caused by the run up in prices from the early 2000 real estate bubble. The Federal Reserve chairman Ben S. Bernanke said “the government is pledging new regulations to stop predatory mortgage lending practices that are affecting so many families”.
He also added that “loan delinquencies and the foreclosure rates have substantially increased over the past year and half. Many neighborhoods may be looking at clusters of foreclosures and many families are facing financial hardships during the months to come.”
“It is the Federal Reserves goal to find ways to prevent unnecessary foreclosures and ways to ensure responsible lending practices” He also noted, “that it extends past sub prime market as well”.
“Far too much of the lending in recent years was neither responsible nor prudent,” he said. “The terms of some sub-prime mortgages permitted home buyers and investors to purchase properties beyond their means, often with little or no equity. In addition, abusive, unfair or deceptive mortgage lending practices led some borrowers into mortgages that they would not have chosen knowingly.”
Some of the states that have been most affected are California, Florida, Ohio, Nevada and Arizona. You can check out new foreclosures daily or get a RSS feed from National Relocation city or states pages.