The U.S. housing market is currently in a worst condition and the situation will only worsen further if foreclosure legislation will not be given priority in the remaining period of President George W. Bush’s Administration.

President George W. Bush

The Associated Press reports that the number of Americans who lost their properties daily average 2,700 from July to September 2008. This is an increase of 1,200 for the same period in 2007.

Figures released by the Mortgage Bankers Association showed over 4 million delinquent homeowners as of June 2008. Almost half-million homeowners have filed for foreclosure proceedings.

The Minnesota Homeownership Center expects a 39 percent rise in the number of vacant properties in 2008.

Several factors indicate that the housing market crisis could worsen. They include declining home values, deteriorating job market and economy. About 52,000 homeowners in Minnesota have mortgage balances more than the market value of their homes.

The private sector implemented some efforts to rework mortgages, including direct assistance to affected homeowners, or through HOPE NOW, a coordinated alliance among mortgage market participants, such as investors, servicers and counsellors.

Federal Deposit Insurance Corp. head Sheila Blair has proposed a plan that calls for the U.S. government to guarantee mortgages renegotiated by borrowers and banks. A bipartisan political support is needed for any market recovery plans to succeed. These plans should also be acceptable to majority of American homeowners who are financially secure

A commitment by President Bush to prioritize foreclosure legislation during the transition period will be a big help to incoming president Barack Obama to address the country’s economic challenges.

Also, Americans should accept the fact that it is a must to help those who are facing foreclosures as well as those homeowners who are financially secure. Unabated foreclosures would only result to lower home market values for every Americans, which may worsen the economic crisis that could create conditions for a potential global recession.