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The housing market continues its deep decline. But even while we are approaching the worst time in history for the housing market since the famous Great Depression, some Judges are actually taking one for the home owner’s team.

Apparently with the huge number of foreclosures being issued by the lenders, lots of mistakes are happening on the paperwork. In fact, some foreclosures are even trying to be pushed through the court system before the lender even has the right to foreclose on it.

Judges in many states are getting in on the act and dismissing these foreclosures causing the plaintiffs to go back and fix the errors or questionable information and then resume the process. Unfortunately, this won’t help every state because only some states require that the foreclosure process even go through the legal system.

However, the states that do require it and have some on the ball Judges working for them, may not see as much of an increase in foreclosures as the rest of the country will.

It seems that it will be the bankers that may be taking the hit to pull approximately 400,000 homeowners out of foreclosure by allowing them to refinance into affordable, government-backed loans.

By reducing the amount that is owed on the home, the banks will be taking a loss on the loan. The banks are initially agreeing to stick to this plan but it is hard to say if they will actually follow through on what they are saying now. There doesn’t seem to be much incentive for them to comply with the program.

They may be forced to comply if the housing market continues to decline. With lawmakers already pushing for this to begin, if the market continues to decline there will be even more pressure on the banks to take the losses. If they don’t, many people are going to be faced with paying mortgage payments that have doubled or lose their homes.

McLEAN, VA — Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.69 percent with an average 0.4 point for the week ending July 26, 2007, down from last week when it averaged 6.73. Last year at this time, the 30-year FRM averaged 6.72 percent.

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