Barack Obama’s new plan to help homeowners may bring about a significant reduction in the number of Foreclosures in the property USA market, it has been predicted.

The president has announced a $75 billion (£52 billion) package aimed at getting mortgage providers to help those close to losing their homes and to assist people with negative equity to refinance.

Such measures are intended to aid as many as nine million households.

President Obama said: "In the end, all of us are paying a price for this home mortgage crisis and all of us will pay an even steeper price if we allow this crisis to deepen."

The situation could mean that those keen on snapping up a foreclosed bargain should move quickly, as the supply of such properties could diminish if the measures are successful.

Recent figures from analysts RealtyTrac showed that in January 274,000 US properties were foreclosed or had notices served on them.

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