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Four major banks have halted foreclosures amid a probe of procedures used for processing documents. Questions and concerns have been raised about whether or not bank officials improperly signed and processed foreclosure documents without reviewing the information.

Bank of America, which previously halted foreclosures in certain states, said in a statement:

“Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for our past foreclosure decisions is accurate. We continue to serve the interests of our customers, investors and communities. Providing solutions for distressed homeowners remains our primary focus.”

Other banks that have halted foreclosures in 23 states include JPMorgan Chase, Ally Financial’s GMAC Mortgage Unit, and PNC Financial Services. According to the New York Times, PNC Financial has suspended sales of foreclosed homes for 30 days and is reviewing its mortgage servicing procedures.

Attorneys general in several states are investigating the banks’ handling of foreclosures, and other lawmakers and consumer advocates are calling for investigations.  Will there be more banks joining those already being investigated?

In an effort to boost sales of its REO properties, Fannie Mae said it would help pay for closing costs for qualified home buyers. Home buyers will receive up to 3.5% of the sales price for closing costs on a property they will live in as their primary residence. The aid can also go towards a home warranty, if necessary.

What’s interesting about this deal plan is that real estate agents and brokers can also qualify for a bonus. Selling agents representing owner-occupants can receive a $1,500 bonus.

The incentive program is for properties listed on www.HomePath.com, Fannie Mae’s REO Web site. The deal is good for offers submitted on or after Sept. 23, 2010, and that close by Dec. 31, 2010. To qualify for the program, the home sale must close within 60 days of the offer being accepted.

More families are ending up in homeless shelters because they can’t make it in this economy. From 2007 to 2009 the number of families in homeless shelters rose to 170,000 from 131,000, according to the Department of Housing and Urban Development (HUD).

Unemployment is obviously a huge factor when it comes to families becoming homeless. The New York Times checked with several major homeless shelters around the U.S. and found that there continues to be a rise in the number of families seeking assistance.

The article stated, “The Y.W.C.A. Family Center in Columbus, Ohio, one of the largest family shelters in the state, has seen an occupancy increase of more than 20 percent over the last three months compared with the same period last year. The UMOM New Day Center in Phoenix, the largest family shelter in Arizona, has had a more than 30 percent increase in families calling for shelter over the last few months.”

While the government has given out some aid to help struggling families remain in their homes, sometimes there is nothing people can do if they’ve lost their source of income and can’t pay their bills.

No one can predict a job loss, sudden illness, or other turn of events that can lead to a loss of income and, subsequently, homelessness. But if you are struggling to make mortgage payments and other bills, try to get help before things escalate to far.

If you own a home, talk to your bank about why you are having a tough time paying your mortgage. Your mortgage lender may be able to help you set up a different payment plan or refinance. A housing counselor may be able to fill you in on various programs that might be able to help you get through financial difficulties. Whatever the situation may be, look for help before your financial problems become too big to solve so you don’t end up in foreclosure, bankrupt, or homeless.