Protecting Vulnerable Homeowners From Effects Of Foreclosures in PA

According to the report released by the Department of Banking, ‘Losing the American Dream: A Report on Residential Mortgage Foreclosures and Abusive Lending Practices in Pennsylvania’ recently, the state of Pennsylvania is experiencing a high rate of foreclosure. The report highlights the subprime practices as the main reason why majority of homeowners state and nationwide have their homes in foreclosure.


Furthermore the report takes initiative to outline a series of methods that can help protect the vulnerable homeowners who are getting affected by the subprime and unemployment situations. PA foreclosure homes (and across the nation) are the reflection of increasingly predatory lending practices where lenders offered loans to homeowners who had bad credit histories and didn’t qualify for ‘prime’ or main loans.

Though the nation’s witnessing a surge in the number of homes in foreclosures by state, foreclosures in Pennsylvania State have seen a dramatic fall since the end of 2006, defying the national trend. New data suggests that the foreclosure situation in the state is beginning to right itself, as the number of new Pennsylvania foreclosure homes has fallen steadily since August. There was some more good news in store for Pennsylvania residents, as the foreclosure filings for 4th quarter of 2007 dipped by 20% compared to October number for 2006. This was a unique occurrence as most other states witness doubling of their inventory for the same period. Pennsylvania State appears to have found an effective way to insulate itself from the subprime tsunami and many experts attribute this to the traditional lending practices followed in the state.

The Pennsylvania lenders exercised precaution and authorized ‘subprime’ loans in lower numbers than in the other states of the nation, invariably reducing the high incidence of bank foreclosures connected to such type of loans.