New Commission Could Help Consumers Struggling With Debt, Foreclosure

At the start of 2011, many Americans are still struggling with financial problems from the previous year including unemployment, debt and foreclosure.

However, consumers that experienced financial damage due to an improper foreclosure may soon receive assistance, as a high- ranking banking regulator suggested a new aid commission could soon be established.

Sheila Bair, chairman of the Federal Deposit Insurance Corporation, suggested this claims commission could be similar to those established for victims of the BP Oil Spill and 9/11, Fox Business reports. She said the commission would need to address complaints from homeowners, many of which will likely be against major banks and stem from the recent robosigning controversy.

In a speech to mortgage bankers in Washington D.C., Bair said the committee would likely prohibit foreclosure sales on homes undergoing disputed claims, except when it could violate an existing contract or damage an investor of the deal.

However, no timetable was given for when the commission would be instated and it could be many months before financially troubled homeowners see any benefits.