According to Reuters the City of Philadelphia has put together a plan that will stop people from loosing their homes. This is welcome news for those facing foreclosure. So what’s the plan?

Well Philadelphia officials have put together the first municipal plan of its kind which will require that houses that are being sold by the sheriff, first have to be go through city hall who will then work with the lenders to restructure the loans so that there is no foreclosure.

As a result those sales that were to occur in the next few months will be put on hold and the lenders and mortgage holders will need to try to work out a payment plan that will work. 

2007 saw an increase of 18% in foreclosures, and currently there are about 8500 homes in foreclosure in just the city of Philadelphia. This problem runs deep far outside of Philadelphia from coast to coast within the US. And if this plan works it just might e something the rest of the country should try to mirror.

What’s the benefit? Well families are disrupted and thrown out of their homes. Instead a payment plan that might work is implemented. This could a real win for the US Economy if Philadelphia’s plan works like they propose it to.

Dealing with payment problems before foreclosure lends itself to a workable solution. After all many of these foreclosures are only a result of low introductory rates coming to an end. It appears to be a promising solution but all we can do now is wait and see.