The government has come under fire, yet again, for reportedly “failing” to address the country’s worsening foreclosure problem. Government watchdogs expressed their dissatisfaction over the Obama administration’s $700-billion bailout program. They told a Senate panel that the initiative failed to produce substantial results as the number of homeowners facing foreclosures continue to rise.

Special inspector general for the financial bailouts Neil Barofsky criticized the program, adding that it hasn’t “put an appreciable dent in foreclosure filings.” He also accused the Department of Treasury of repeatedly ignoring demands to set clear goals for the bailouts.  “Treasury’s continued indications that this is a successful program without identifying these goals and benchmarks are simply not credible. And I fear that the growing public suspicion that this program is an outright failure will continue unless and until Treasury adopts this recommendation and comes clean with what its goals and expectations are.”

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Real estate agents in areas affected by the country’s worst oil spill are demanding compensation.

Kenneth Feinberg, the administrator of a $20-billion oil spill compensation fund, revealed the development in his congressional testimony. “I’m hearing from them (real estate agents and brokers) constantly. I’m not sure whether they have a valid legal claim. I’m not sure they can win if they litigate,” he said.

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Efforts to revitalize the housing market have received another blow as construction of new residential real estate fell to the lowest level since October last year.

Data from the Department of Commerce showed that construction of new homes and apartments plunged by 5% in June to a seasonally adjusted annual rate of 549,000. Industry experts said a 20% decline in condominium and apartment construction dragged down the figure as the sluggish economy dampens demand for new homes. Construction of single-family homes, meanwhile, fell by 0.7%.

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Commercial real estate may be headed to a faster recovery after all, said a real estate investing giant said.

According to Prudential Real Estate Investors, which has been investing in real estate on behalf of institutional clients since 1970, the lack of financing may help in the recovery. The lack of funding will prevent new construction and an increase in supply.

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Nowadays, it is more difficult for parents expecting a baby to have a home of their own.

An online report said that banks are now scrutinizing the slightest of details on why a borrower may not be able to pay mortgage – maternity leaves are not exemption.

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Although it has been four years since the burst of the housing bubble, industry experts and analysts noted that the housing market has yet to fully recover. They said that despite the slight improvement in home sales and real estate prices in recent months, the housing market is still expected to slow down further in the later part of the year.

In a recent report published by USNews.com, experts cite various reasons why the housing market is still in the doldrums. According to Timothy Dwyer, chief executive officer of Entitle Direct, the high unemployment rate is one of the reasons that discourage potential home buyers from purchasing real estate. He stressed that many consumers are hesitating to buy a home because they are either out of work or are worried about losing their jobs, which will make mortgage payments more difficult for them. The sluggish labor market also forces consumers to just move in with friends or family members instead of buying a new house.

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In move that appraisers say would greatly benefit sellers, a mortgage giant has barred lenders from making arbitrary reductions to home valuations.

The Federal National Mortgage Association (Fannie Mae) said that from September 1, lenders who sell loans to the mortgage finance firm may no longer change appraisers’ valuations. The government-sponsored enterprise added that if there are differences between the appraiser’s and the lender’s valuations, the lender should resolve it with the appraiser. Or, the lender may also order a second appraisal.

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It seems that it would take another year before sweeping changes will be made in the housing finance sector.

The Department of Treasury said the housing sector will be spared from a financial rule overhaul until next year as federal officials are focusing their attention on reforming Wall Street. However, Deputy Treasury Secretary Neal Wolin assured the people that the department will issue a paper outlining proposals and recommendations for changes on housing finance rules by early next year.

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Whether it’s a sign of desperation, warming diplomatic ties, or plain effort to boost a slumping housing market, you decide.

The government is currently wooing Chinese real estate investors to buy lots and properties in the United States. The Ministry of Commerce is serving as the country’s “real estate agent” to China for now.

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At least one million households are likely to lose their homes this year as lenders are working double-time to come after delinquent borrowers.

Data released by RealtyTrac Inc. showed that banks and mortgage companies are foreclosing homes at a very fast rate. On the first half of the year alone, lenders repossessed almost 528,000 homes. And with the growing number of borrowers who have fallen behind on their loan payments, industry experts believe that the figure could exceed the 900,000 homes repossessed in 2009.

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