Whoever wins the president election in November; the number of foreclosure homes in the country will keep ascending. It is unlikely the new president would be able to control the situation as the value of real estate properties including homes are slumping with an increase in mortgage day by day. These debtors even owe more to the lenders than the actual current value of their homes.

It seems an uphill task for any of the would-be presidents, whether it is Democrat Barack Obama or Republican John McCain, to change or improve the situation at least within two years. Many factors are responsible for the rising foreclosures in the real estate market.

Leaving a foreclosed house means addition of one more to the list of vacant homes in the market. More vacant houses thus slash down the home values in the neighborhood, and that paves the way for increasing the number of foreclosures even more. As Lawrence Summers, a former Treasury Secretary says, the number is expected to be over 2 million homes by the end of the next two years. According to most of the experts, the number may reduce with the hiking in the rate of real estate properties during 2010’s spring selling session.

Another deciding factor is the Federal Reserve Action over which the president has no control. In order to stop inflation further, the Fed is expected to boost the rate of interest. In that instance, homeowners have to pay more to repay their debts, and so more foreclosures are likely in the market. These factors are not alarming for just the borrowers but for almost 57% Americans as recorded by AP-Yahoo News poll.

Both, Mr. Obama and Mr. McClain, are trying their best to help the borrowers facing foreclosure. However both are optimistic about the Federal Housing Administration that’s going to provide cheaper mortgage rates for the unfortunate homeowners.

According to Obama, these people won’t have to show good credit, but should prove the capability to afford new payments. This would help almost 400,000 distressed. This is a plan of around $1billion, and will be managed from an affordable housing fund financed by Fannie Mae and Freddie Mac.

McCain’s plan has a twist, and that needs people to show that they were capable of repaying at the time they got the original loan. His plan is estimated to be of $3Billion to $10 billion, and is expected to be managed by cutting the Government’s cost. Real estate owners are hopeful, however doubtful, that the situation will calm down.

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Speeding up foreclosure sales may be in the best vested interest for each home owner. However, treating it as the silver bullet is really not the way. According to Dustin Hobbs, a spokesperson of a California based Mortgage Bankers Association the best of the lot in the case of any borrowers’ home can be saved with refinancing or loan modification. In fact, more benefits are more likely to be reaped now than at any other time. The industry’s efforts are also geared towards saving money to generate an extra effort in saving one’s homeownership but not clearing the inventory.

As vacant homes with “for sale” or “for rent” signs frequent more and more of the streets of Florida, one can see rummaged premises with knee-high weeds and deserted looks all over. And the sad part is, these disconcerting sights continue to grow. Neighborhoods like Carriage Pointe in Florida happened to be spectacular points for buying foreclosed houses, a place where you could find your neighbors evacuating in truck loads overnight, and the next morning you don’t get to see them at all!

Greg Gibbons, who lives in one of these neighborhoods recounts what a depressing spell this has been. The entire nastiness of the foreclosure crisis has vastly disrupted normal community bonding. Homeowners stretched with mortgages that have fluctuating rate financing, have been particularly hard hit. As their homes become a product of their mortgage interest rate, and the foreclosing of properties become a more or less rapidly frequenting feature, the Bay Area has seen their long-lasting imprints left on it.

As much as 69% of the 381 homes in the entire county of Carriage Pointe got owned by people who came from other neighborhoods in the last few years, due to the massive housing boom. County officials have estimated that this year around 31% of the homes have dwindled into foreclosures and many other homes are rapidly on a downward slope with their daily dithering struggling to make ends meet, and meeting their mortgage payments. Altogether more and more homes face failure in meeting rising mortgage payments as the interest rates keep getting unexpectedly higher. This has still been a poignant problem even though some landlords have drastically cut rents.

With the entrance to the Carriage Point, on Symmes Road near the Interstate, one gets to notice the following placard, stating “homes starting in the low 200s”. That’s the phase that was at some point promised to include a swimming pool as well as an amenity center, but builders now seem to realize that such a home-buying boom period is over for the time being.

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A proposal for a six month suspension on foreclosures has been made by some lawmakers as the numbers of people unable to pay their mortgages are increasing. Three bills have been introduced with the purpose of providing relief to the mortgage climate and the proposal for moratorium is among them. According to the second bill the tenants would be able to live in the foreclosed houses for another year.

The final bill would enable the homeowners to challenge their foreclosures at court. This law is the same in another 29 states like Connecticut, Maine, Florida, etc. Specific categories of subprime loans would attract a moratorium of six months on foreclosures. This category covers loans which have been approved without finding out whether the borrowers can actually repay them. During the standstill period, the homeowner would be negotiating terms with the lenders to come to an affordable monthly payment and he would continue to pay his loan.

According to a spokeswoman from the administrative department, foreclosures of around 600 properties across the state became delayed since the passing of the law. Since the volume of foreclosures is steadily increasing and the real estate market is facing a low, the numbers of empty homes are also increasing. In Lawrence more than 800 homes are facing foreclosure and it’s the nation’s third highest number. William Lantigua, a representative from Lawrence said that all the three measures taken by the bills were essential for bringing about stability to the Lawrence real estate market. The huge numbers of vacant homes were attracting vandals and thieves. Anthony Verga, a representative from Gloucester district said that it is unfair to throw the tenants out as the entire neighborhood is destabilized. He supports moratorium as it would give people a chance to negotiate and come to an agreement.

In 2007, Essex County had faced a hike of 65 percent in the rate of foreclosure while in Cape Ann, the hike was 47 percent. The foreclosure crisis was triggered off by the increase in the interest rates of subprime loans. These loans had adjustable rates and when the rates increased, people were unable to afford it. Since the real estate market was facing a low, the homeowners could not get rid of the problem by selling off their properties as the loans amounted to more than the property’s value. Tucker, a Democrat who is the chair of the Legislature’s Housing Committee, said that she would rather face the risk of foreclosure than lose lenders, scared away by moratorium. Lenders were essential as the credit was needed so that people were able to buy homes.

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The California foreclosure bill which targeted the ever-increasing problem of vacant foreclosed homes faced a narrow defeat last Wednesday. According to Don Perata, the sponsor of this bill, its objective was to make sure that people stayed in their own homes. However, the Republicans in the Senate argued that the bill would be an unfair burden on banks as well as on mortgage companies.

A Republican Dave Cox, said that, the lenders would be scared away from California by the bill as they could face a fine of $1,000 daily if they failed to maintain vacant properties, and also give a notice of four months before there is a 10 percent or more increase in mortgage payments. The foreclosure rate in California is among the top five and the state, in fact, has the highest volume of foreclosure. Perata goes on to say that, often three or four houses going waste in a neighborhood is a common sight. This problem has been the topic of hot debate in economic circles for many months now, and California is one of the top states suffering from foreclosures in the country.

According to George Runner, who is a Republican hailing from Lancaster, South California, the law should try to pin down home owners who claimed larger loans by lying about their income, as well as on unethical lenders who trap people into taking loans they cannot possibly afford. Perata had submitted the measure in the form of urgency legislation and to be passed, it required a two thirds majority in its favor. However, it failed as there were 14 votes opposing it, whereas only 26 votes were in favor of the measure. Perata admitted that the high foreclosure rate in California was also partly due to fraud, speculation as well as non-viable financial planning.

In California alone 300,000 loans wait to be reset. Last week, the State Assembly introduced parallel legislation which declared that people wanting to buy houses should be able to afford insurance, mortgage and property taxes. The rules governing mortgage brokers and agents dealing in real estate in California were made stricter in tune with the lending guidelines of the federal government. Foreclosed houses have been burgled and stripped of electrical appliances, copper wiring and pipes, all of which can be sold as scrap. It is truly a sad sight to see empty neighborhoods with foreclosed homes.

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