There are a lot of people wanting to sell their houses today. Drive through most neighborhoods and you'll see a plethora of choices.

Many have been on the market for over a year, and are still up for sale. Some have stopped even trying, realizing it's a lost cause right now.

Some of the reasons people can't sell are:

• they have lost equity in their house, keeping them from making enough to move up
• they owe more than the house is currently worth
• there aren't enough buyers who can afford to purchase
• the prospective buyers can't sell their house

An article in National Mortgage News reports that Federal Reserve Board Chairman Ben Bernanke used the word "dismayed" when discussing the declining home values and high foreclosure rates that continue to occur. When addressing the Senate Banking Committee, he made some key points:

• the Treasury Department has been very innovative in devising loan modification and other programs to address foreclosures. "There have been sincere government efforts to address the problem but they run into lots of bureaucratic and other difficulties".
• unemployment is 10% (this past Friday, it dropped to 9.4%.)
• there are a high number of vacancies which reduces the value of the neighboring homes

These factors, according to Bernanke, is "affecting household wealth, consumer spending and confidence." He is asking for principal reduction programs to "create incentives for homeowners to stay in their homes."

This might stop the flight of people who can afford their mortgage, but choose to walk away from them because they are upside down so severely they don't see a way out. If they can receive a principal reduction, they will be in a better position to sell and move up. Unfortunately, Senator Jeff Merkley, D-Oregon, noted that there hasn't been much action taken on such a program.

If you are feeling overwhelmed with your mortgage, are wanting to refinance to take advantage of the current low interest rates, or have questions about what's the best option for you, contact a trusted mortgage broker for assistance.