Stop Foreclosure: Updates on Proposed Foreclosure Laws & Solutions
A recent forecast by Housing Predictor has estimated that more than two million homes in the United States will face foreclosure in the next 2½ years; numbers that represent the nation's worst housing crisis since the U.S. Savings and Loan scandal. In addition to those affected families who have gone into panic mode to stop foreclosure and save their home, legislators have been aggressively seeking solutions to this foreclosure crisis.
National and local legislators have been trying to stop foreclosures through various legislative means, from attacking predatory mortgage lenders to assisting mortgage borrowers to even offering financial assistance to families who may have to stop foreclosure in the immediate future. Learn more about proposed national and state foreclosure laws and stay updated on the latest legislative efforts to stop foreclosure below.
Foreclosure Legislative Updates as of March 20, 2008
Maryland House Introduces Two Anti-Foreclosure Bills
The Baltimore Sun reports that two foreclosure-related bills were recently cleared by a House committee, meaning they'll soon be up for vote before the entire House of Representatives. The bills, which have apparently been prioritized by Governor Martin O'Malley's administration, would offer protection for homeowners facing foreclosure. One would extend the foreclosure process - which currently can happen in a mere 15 days - to more than four months. Lenders would have to notify homeowners at least 45 days before taking foreclosure action, and the foreclosure proceedings themselves could not start until 90 days after a loan defaulted. The other bill would increase the penalties for mortgage fraud, with the potential for a $10,000 fine, five years in prison, or both.
Dodd and Frank Unveil FHA-Backed Foreclosure Prevention Plans
According to Bloomberg News, Senator Chris Dodd and House Financial Services Committee Chairman Barney Frank have announced a plan that would allow the Federal Housing Administration to insure refinanced mortgages once lenders reduce principal. The proposal, which requires more government intervention than the measures so far endorsed by the Bush administration, would provide up to $300 billion in guarantees, and could apparently help one to two million homeowners facing foreclosure. It would likely cause significant financial losses for lenders, according to the article.
Michigan Senate Passes Bill to Protect Armed Forces from Foreclosure
Sponsor Jim Barcia described a bill that unanimously passed Michigan's Senate as offering greater protection and peace of mind to those returning from overseas military service, according to mlive.com. The current terms of the federal Service Members Civil Relief Act allow courts to postpone foreclosure proceedings for 90 days after a veteran returns. The bill, which will now move on to the state House, would extend that period to six months.
A Pause Proposed for Minnesota Homeowners
Minnesota Senator Ellen Anderson has introduced the Minnesota Subprime Foreclosure Deferment Act of 2008, which would give state residents struggling with their mortgages a one-year respite from foreclosure proceedings, according to HomeTownSource.com. Sources indicate that the bill, which would not actually excuse any debt, would effectively give homeowners time to search for other solutions, like Chapter 13 bankruptcy. The bill was apparently first introduced with the belief that the federal government will intervene in the next twelve months and provide struggling homeowners with a long-term solution.
Updated Efforts to Stop Foreclosure as of December 13, 2007
President Bush Unveils Anti-Foreclosure Plan
President Bush, Treasury Secretary Henry Paulson and Department of Urban Housing Secretary Alphonso Jackson revealed their plan for helping families facing foreclosure. The plan, which puts a five-year interest rate freeze on rate adjustments for homeowners with adjustable rate mortgages, has been criticized for its limited scope of application. For homeowners to qualify for the rate freeze, they must be current on payments but nearing a rate reset and living in the property with an adjustable rate mortgage. Critics have estimated that this plan will only help about 145,000 (7%) of the 2.2 million families facing default or foreclosure. For more information on Bush's plan, call the toll-free foreclosure hotline at 1-888-995-HOPE.
Bigger Role for Bankruptcy Judges?
Reports from the Wall Street Journal indicate that members of the House Judiciary Committee have agreed on the terms of a law that would give bankruptcy judges more leeway to alter and restructure terms of mortgages. Despite this promising turn, sources indicate that the full House will likely not vote on the bill until 2008. Bills awaiting approval in the Senate include one that would give the FHA power to help more borrowers facing difficulties and one that would change the mortgage lending and securitizing process.
NYC Nonprofit to Ease Foreclosure Troubles
In New York City, $5.3 million has been funneled toward the nonprofit Center for NYC Neighborhoods, an organization designed to keep struggling homeowners from losing their homes, reports the New York Daily News. The program is projected to help 14,000 families with mortgage troubles, and reportedly aims to encourage borrowers to seek help before it's too late to refinance their loan or otherwise provide relief.
Updated Efforts to Stop Foreclosure as of December 6, 2007
Help for Michigan Residents Who Need to Stop Foreclosure
Kalamazoo Neighborhood Housing Services, Inc. has been awarded a $15,000 grant from State Farm Insurance to help fund foreclosure education programs for Michigan residents. The programs, run by Kalamazoo's Homeownership Center, place special emphasis on foreclosure help. KNHS, a non-profit housing agency, offers services such as financial counseling, home purchase counseling, homeownership education, home rehabilitation guidance, credit education, homebuyer assistance, and foreclosure prevention. Its counselors work one-on-one with homeowners to help with foreclosure-related problems.
Massachusetts Passes Foreclosure-Prevention Bill
The Massachusetts Legislature passed a foreclosure prevention bill that will help borrowers who have fallen behind on mortgage payments and strengthen the state's role in overseeing mortgage lenders. Together with regulations introduced by the attorney general's office, the legislation will provide the nation's most stringent lending standards, according to consumer activists. The bill includes protections for borrowers currently behind on their payments as well as standards for future mortgage agreements, illustrating the hope that another foreclosure crisis does not lie in the future.
A Moratorium on Mortgage Resets
Treasury Secretary Henry Paulson has announced a plan to ease the foreclosure crisis for many borrowers by postponing mortgage resets for a period of time. The measure, which would be available to homeowners who have kept up with payments at the introductory rate of their mortgages but will be unable to make payments when the rates reset, could delay rate resets for as much as three to seven years. Paulson was careful to point out that the plan is not meant as a cure-all for the problems in the mortgage market, but could help financially responsible homeowners who are struggling. Hillary Clinton, Presidential candidate and Senator (D-NY), has added that the Treasury's measures alone are not sufficient to help struggling borrowers, and should be combined with a 90-day moratorium on foreclosures.
Updated Efforts to Stop Foreclosure as of December 4, 2007
Mayors from across the Country Meet to Discuss Means to Stop Foreclosure
This past Tuesday, mayors from throughout the country gathered in Detroit to talk about the foreclosure epidemic and ways to help families save their homes. Organized by the U.S. Conference of Mayors, the National Forum on Homeownership Preservation and Foreclosures included discussions about the current state of the mortgage industry, ways to stop foreclosure both on local and national levels, and strategies to keep foreclosed properties from affecting the property values of nearby homes. The meeting seemed appropriate in Detroit, as the city was recently ranked second in the nation with one foreclosure per every 33 households. Stockholm, California was number one in terms of foreclosure rate, with one foreclosure for every 31 households.
Congressman Calls for Foreclosure Moratorium
Just days before the Thanksgiving holiday, U.S. Congressman Chaka Fattah (D-PA) called on President George W. Bush to issue an emergency foreclosure moratorium for the next six months. The moratorium would essentially stop foreclosure proceedings for the time being and allow for the development of long-term strategies to combat the current foreclosure crisis. While commending Bush for how he has previously addressed the foreclosure epidemic, Fattah added that more needs to be done to keep families from losing their homes.
Texas Attorney General Details Goals to Help Stop Foreclosure
Texas Attorney General Greg Abbott has proposed several measures that he wants lenders to adopt to help stop foreclosures. Abbot has suggested that four major lenders - Citigroup, HSBC, Wells Fargo and Chase - consider converting adjustable-rate loans into fixed-rate mortgages, improve communications with financially-distressed homeowners by first seeking solutions with them instead of just sending their cases to collections, and waive penalties and fees for homeowners working with them to stop foreclosure. Abbott has asked legislators to follow up with his proposals in the next 30 days.
Virginia Governor Creates Foreclosure Prevention Task Force
Earlier this month, Virginia Governor Tim Kaine created a foreclosure prevention task force to analyze and access foreclosures in the state, especially before many adjustable rate mortgages reset. The task force's duties include identifying and reviewing the resources available to homeowners who need to stop foreclosure, recommending outreach programs to such people, and examining current state laws and regulations to determine if any legislative actions are needed. There were 5,800 Virginia homes in foreclosure during the second quarter of 2007.
Updated Efforts to Stop Foreclosure as of November 21, 2007
Indiana Foreclosure Panel Seeks More Disclosure from Lenders
An Indiana legislative panel examining the foreclosure epidemic in the state has agreed on several new recommendations for mortgage lenders. Under the panel’s recommendations, lenders in the state would now be required to give potential borrowers a summary of the highest possible interest rate that they could be charged under a loan. The panel would also ban lenders from charging prepayment penalties for high-risk loans and thus help those homeowners who want to refinance but can not do so with their subprime loans.
Lenders Reject Ohio Governor’s Plan on Foreclosure Crisis
Ohio Governor Ted Strickland’s plan to stop foreclosure in the state was recently rejected by lenders who called his proposals “unrealistic.” Strickland had proposed several requirements of banks, including giving a six-month notice to borrowers before their interest rates changed and having a dedicated mitigation staff available by a toll-free telephone call. Not a single lender in the state agreed to sign Strickland’s proposal. Strickland called this response “inadequate” while the lenders and banks said that the foreclosure crisis in the state is not solely their faults. There were more than 79,000 Ohio foreclosures last year, and that number is projected to be near 81,000 by the end of 2007.
New York Governor to Go After Unscrupulous Lending in Legislation
Last week, New York Governor Eliot Spitzer indicated that he will push for legislation prohibiting unscrupulous mortgage lending practices. Spitzer also asked the financial services industry to create a fund that would help borrowers modify home loans, stop foreclosure and stay in their homes. Stating that the state could not create such a fund alone, Spitzer called private companies to help out. He further elaborated the need for legislation that would provide for in-depth evaluations of a borrower’s ability to pay, strengthen state enforcement against shady lending, and convey the point to lenders that they have certain duties to borrowers.
Updated Efforts to Stop Foreclosure as of November 13, 2007
House Committee Dives into Foreclosure Epidemic
On November 3rd, the House Financial Services Committee met about the foreclosure crisis in the country and urged the need for prompt action. Under Secretary for Domestic Finance Robert K. Steel described the housing crisis as "the most significant current risk to our economy" and estimated that the foreclosure rate will remain elevated for the next 18 months. With that said, Chairman Barney Frank said that the issue is a private matter and that no tax money will be use to bail out borrowers and lenders.
Iowa Attorney General Addresses Foreclosure Crisis in Front of Congress
Warning Congress that the foreclosure crisis is just beginning, Iowa Attorney General Tom Miller recently called for the need for "common sense" actions to help modify loans that may produce future difficulties for homeowners to pay as a result of adjustable and inflated interest rates. Miller, who has been one of the more aggressive figures in the country in addressing the foreclosure crisis, detailed Congress about a mediation initiative in Iowa in which homeowners can contact professionals about their worries to repay loans. See what else Miller has done to try to stop foreclosure in Iowa in the following article:
Pennsylvania Governor Launches Loan Programs to Stop Foreclosure
Last week, Pennsylvania Governor Edward G. Rendell announced the formation of two new resources to help homeowners avoid foreclosures prompted by the rise in adjustable-rate mortgages. Under the REfinance to an Affordable Loan, or REAL program, homeowners who have been unable to afford mortgage payments because of unaffordable adjustable-rate mortgages will be offered refinancing. Under the Homeowner Equity Recovery Opportunity, or HERO program, loans will be offered to those homeowners who can not afford their mortgages because of credit or other issues and are not eligible to save their home from foreclosure via other programs.
Congressional Foreclosure Legislation Goes after Predatory Mortgages
On October 23rd, Unites States Representative Barney Frank (D-Massachusetts) introduced a bill that would restrict predatory lending practices attributed to the foreclosure surge throughout the country. This legislation would require "a mortgage originator to act solely in the best interests of the consumer, including finding the residential mortgage loan that best meets the needs of the borrower." This bill to stop future foreclosures would ban lenders from prodding borrowers toward high-cost loans.
Frank's bill specifically encourages states to enact stronger mortgage regulations, but also sets up federal regulations if states fail to act upon such an initiative. Banking groups were critical of Frank's anti-foreclosure legislation, arguing that it would raise prices and reduce the options available for potential home borrowers.
Massachusetts House Passes Legislation to Stop Foreclosure
In mid-October, the Massachusetts House passed legislation that would help aid the fight to stop foreclosure. Of its many initiatives, this legislation would most notably require up to 20,000 non-bank loan originators to pay a $500 annual fee for a state license, require certain first-time home owners to get counseling before obtaining a mortgage, and allow homeowners facing foreclosure the opportunity to renegotiate better terms. The Massachusetts Senate had already passed similar legislation.
Updated Efforts to Stop Foreclosure as of October 23, 2007
Indiana Foreclosures to be Addressed in Committee's Final Meeting
On October 30th, the Interim Study Committee on Mortgage Lending Practices and Home Loan Foreclosures will hold its final meeting to examine means to stop foreclosure and mortgage fraud in Indiana. The Hoosier State has been cited in some real estate studies as being in the top ten for states with the highest foreclosure rates. Foreclosure-Fighter will keep you updated on any developments during this meeting to stop foreclosure in Indiana.
Massachusetts Governor's Anti-Foreclosure Plan Getting Little Support
Massachusetts Governor Deval Patrick has been one of the more aggressive governors in the country in terms of finding ways to help families stop foreclosure. With that said, one of his anti-foreclosure plans is receiving little support from lenders. Patrick had proposed that lenders pay $5,000 for moving expenses and rent for new apartments for people who lost their homes to foreclosure. Kevin Cuff, executive director of the Massachusetts Mortgage Bankers Association, essentially said that signing off on such a blanket relocation expense would be foolish for lenders. This aspect of Patrick's anti-foreclosure plan has intended to help revitalize areas in the state that have been hit hardest by foreclosure. Massachusetts has witnessed a 76 percent increase in foreclosure petitions during the last year.
Charles Schumer Introduces New Foreclosure Legislation
On October 11th, Senator Charles E. Schumer (D-NY) introduced much-anticipated foreclosure legislation that would aid the ability of Fannie Mae and Freddie Mac to help initiate refinancing for homeowners who may need to stop foreclosure. Schumer's bill would free up $150 million in private-sector funds towards the fight of stopping foreclosures. This bill would do so by temporarily lifting the mortgage portfolio limits held by Fannie Mae and Freddie Mac by 10 percent for six months. 85 percent of that increase (approximately $125 billion) would be mandated towards providing refinancing for subprime borrowers. With that said, United States Representative Barney Frank (D-MA) was also expected to introduce a companion measure to Schumer's bill in the House.
Updated Efforts to Stop Foreclosure as of October 18, 2007
Michigan Governor Announces Plan to Help Families Stop Foreclosure
If you're facing foreclosure in Michigan, relief could be on the way. Last week, Michigan Governor Jennifer M. Granholm announced two programs offering new refinancing options to people who need to stop foreclosure. Specifically, under the Adjustable Rate Mortgage (ARM) Refinance Program, homeowners with an ARM will be assisted in refinancing to a lower-interest, fixed-rate loan. The Rescue Refinance Program will provide assistance to individuals who are delinquent on their mortgage and at risk of losing their home to foreclosure. These new programs will be administered by the Michigan State Housing Development Authority (MSHDA) as part of its "Save the Dream" campaign to help citizens maintain homeownership by stopping foreclosure.
Proposed Wisconsin Foreclosure Law to Target Foreclosure Scams
A proposed Wisconsin law would aim to stop foreclosure scams by making it a crime to obtain properties in foreclosure by deceit or lies. This proposed Wisconsin foreclosure law would specifically target those foreclosure rescue scammers who offer help to families in desperate need of it only to strip out all of the equity in their homes. The "homeowner protection" act was introduced by Representative Jon Richards and Senator Jim Sullivan, who expressed confidence that the bill will be quickly passed and sent to the governor.
Updated Efforts to Stop Foreclosure as of October 11, 2007
How Hillary Rodham Clinton Would Stop Foreclosure
While campaigning in Cedar Rapids, Iowa earlier this week, Democratic presidential hopeful Hillary Clinton addressed a number of issues, from trade enforcement to the foreclosure crisis in the United States. Among her measures to stop foreclosure, Clinton said that she would establish foreclosure consultants for people in danger of losing their homes, temporarily increase the lending limits of Fannie Mae and Freddie Mac, and crack down on unethical mortgage consultants.
San Diego City Ordinance to Change Foreclosure Notifications
San Diego Councilmen Brian Maienschein and Tony Young recently proposed an ordinance that would require financial institutions to notify the city's Neighborhood Code Compliance Department about homes in foreclosure. Young said that there are more than 8,000 homes in some stage of foreclosure in San Diego County. Maienschein said that the sight of abandoned homes is an eyesore to the community and asked the City Attorney's Office to present a draft ordinance to the panel within 30 days.
House of Representatives Passes Foreclosure Bill
On October 5th, the U.S. House of Representatives passed a bill by a whopping 386-27 vote that would ultimately protect homeowners from being taxed by the I.R.S. for any debt forgiven during a foreclosure. As an example, the I.R.S. may currently tax someone who has a $140,000 mortgage and sells his or her home in foreclosure for $100,000 for that forgiven $40,000, which is considered phantom income. Under this proposed legislation, the I.R.S. would be prevented from taking such action. This bill must now be passed in the U.S. Senate and signed by President George W. Bush before it would become a law retroactive to January 1st of this year.
Updated Efforts to Stop Foreclosure as of October 4, 2007
Foreclosure Mayoral Summit Announced for End of November
Detroit Mayor Kwame Kilpatrick has said that he will host a mayoral summit involving mayors from at least 22 big and small cities at the end of November as a means to develop local solutions for the current foreclosure crisis. Kilpatrick was quoted in a Detroit Free Press story as saying that "federal bailout would be too late" at this point and that a grassroots effort will be needed for solutions to current foreclosure problems. Kilpatrick has also invited officials from various mortgage companies and banks to discuss new products that could address the problems with subprime and adjustable rate mortgages. The council will take place on November 27-28 at the new MGM Grand Casino in Detroit, which is probably not the most ideal place to deal with the foreclosure crisis.
Nevada Lawmakers to Address Foreclosure Crisis
Just how bad has the foreclosure crisis gotten in Nevada? Recent statistics indicated that a total of 6,197 Nevada homes faced foreclosure in August, which broke down to a rate of one of every 165 homeowners in the state. With the highest foreclosure rate in the nation in mind, Assemblyman Marcus Conklin (D-Las Vegas) has scheduled an October 22nd legislative study committee in which those involved will seek innovative ways to provide loans to those families who need to stop foreclosure. Conklin said in a story in the Nevada Appeal that there is a surplus in the Mortgage Lending Division that can be used to help provide loans for those on verge of foreclosure and to also fund classes to educate consumers about dangerous loan schemes.
House Bill Would Address Foreclosure Tax for Some
Did you know that the Internal Revenue Service may view some homeowners who've lost their homes to foreclosure as making money on the transaction? According to U.S. Representative Zack Space (D-OH), if a home with a $140,000 mortgage was sold for $100,000 at a foreclosure auction, the IRS may view the difference as phantom income that is taxable. With the foreclosure process already taking a huge financial and emotional toll on homeowners, Space has introduced the Foreclosure Relief Act, which would provide relief from these taxes for people who really needed it. Specifically, a provision in this act would make people with an income of more than $100,000 not eligible for this tax break, and it would also not apply to rental properties, second homes or vacation homes. Space has said that he hopes such an act would benefit those people who really need the break from the tax and that the wealthy would not be able to use it to their advantage.
Updated Efforts to Stop Foreclosure as of September 27, 2007
House Bill Would Alter Mortgages in Attempt to Prevent Future Foreclosures
600,000 American homes could be saved from foreclosure, according to the authors of a bill in the U.S. House that would give bankruptcy courts the power to alter mortgages written by predatory lenders. Representatives Brad Miller (D-NC), Linda Sanchez (D-CA) and Barney Frank (D-MA) have introduced this bill repealing a provision stating that bankruptcy courts can not modify a home's first mortgage. With some 5 million adjustable-rate mortgages set to reset within the next 18 months, this legislation represents just the latest efforts to find ways to prevent future foreclosures in wake of the current mortgage crisis in the United States.
Ohio Governor Ted Strickland Asks for Help to Stop Foreclosure
On September 21st, Ohio Governor Ted Strickland appealed to nonprofit community organizers for help in wake of the foreclosure spike in the state. Strickland specifically said that the current foreclosure crisis requires an accurate response on all levels, beginning with the federal and state government and then spreading to grassroots organizations like nonprofit community groups which have the experience to help people. Strickland noted during the meeting with nonprofit community organizations in Akron how he has helped addressed the foreclosure crisis by establishing the Governor's Office of Urban Development and Infrastructure, which will make it easier for state government officials to work with mayors and other important city members when addressing daunting issues like foreclosure.
Updated Efforts to Stop Foreclosure as of September 20, 2007
The Windy City Finds Some Much-Needed Foreclosure Help
U.S. Treasury Secretary Henry Paulson flew into Chicago last week to announce nearly $30 million in grants for community-based lenders to help prevent foreclosure in the city. Specifically, $27.3 million in federal funding will be provided to provide home-ownership counseling and spread the message of foreclosure prevention in Chicago. Roughly $1.6 million of this federal funding will be allocated to Chicago-based nonprofits.
Governor Kulongoski Aims to Stop Foreclosure in Oregon
With Oregon foreclosures at record levels, Governor Ted Kulongoski has stepped in to help families who need to save their homes. On September 14th, Kulongoski announced a plan involving the Department of Consumer and Business Services to help Oregon homeowners who may need to stop foreclosure. In addition to offering pre-foreclosure counseling and working with lenders to refinance mortgages, the Department will look into examining new means to help stop foreclosure.
U.S. Senate Approves $200 Million in Aid to Help Stop Foreclosure
U.S. Senators approved $200 million in foreclosure aid on September 12th to help homeowners on the verge of losing their homes stop foreclosure. The money is specifically designed to help homeowners who are intimidated by mortgage services by having nonprofit groups like the Association of Community Organization for Reform Now (ACORN) and NeighborWorksAmerica to step in as intermediaries and provide help. Senators Charles Schumer (New York), Sherrod Brown (Ohio) and Robert Casey (Pennsylvania) worked to get $100 million of this aid for nonprofits while Senators Chris Dodd (Connecticut) and Christopher Bond (Missouri) secured the remaining $100 million.
Attorney General Tom Miller's Latest Efforts to Stop Foreclosure in Iowa
Back in March, Foreclosure-Fighter detailed how Iowa Attorney General Tom Miller had proposed legislation to fight predatory lending practices in the state. With that said, Miller is continuing his effort to crack down on Iowa foreclosures. On September 11th, Miller announced that his office has contracted with Iowa Mediation Service Inc., which will negotiate new loan terms for borrowers on the verge of foreclosure. The state used this service during a foreclosure crisis involving farmers in the 1980s, and this private nonprofit essentially helped thousands of farmers stop foreclosure by renegotiating their loan terms with their lenders.
Charles Rangel Speaks about Foreclosure Crisis
While talking about initiating the biggest overhaul of the U.S. tax code since 1986 on September 7th, House Ways and Means Committee Chairman Charles Rangel briefly touched on the foreclosure crisis. Rangel said that he plans to introduce legislation based on President Bush's recent foreclosure prevention proposal. Specifically, Rangel indicated that he will introduce legislation in which the Federal Housing Administration will guarantee loans for delinquent borrowers, thus allowing them to stop foreclosure and refinance their mortgages at much more favorable rates. Rangel further specified that he will introduce legislation protecting middle-income people from foreclosure taxes.
Updated Efforts to Stop Foreclosure as of September 11, 2007
Mortgage Lenders Urged to Give a Heads-Up to Borrowers on Verge of Foreclosure
Just days after President George W. Bush announced various steps to help families stop foreclosure, the banking industry has jumped on board with a similar message. Specifically, U.S. banking regulators have urged mortgage lenders to take a proactive rather than a reactive approach to stop foreclosure. How can this be achieved? The Federal Reserve and other U.S. banking regulators want these lenders to assist borrowers who are facing higher monthly mortgage payments because of subprime loans by helping them refinance into fixed-rate loans.
Ohio Congressman Plans to Introduce Legislation to Stop Foreclosure Taxes
Ohio Congressman Zack Space recently let his constituents know that he plans to introduce legislation which will alleviate foreclosure taxes on people who lose their homes to foreclosure. Providing an example in an online newspaper editorial, Space said that is unfair for a person who loses his or her $300,000 home to foreclosure to have to pay off the remaining $70,000 mortgage balance if the home is sold for $230,000. We’ll keep you updated on any more details with Space’s legislation to stop foreclosure taxes.
Updated Efforts to Stop Foreclosure as of September 07, 2007
President Bush Announces Steps to Help Families Stop Foreclosure
With the foreclosure crisis reaching unprecedented levels in the United States, President George W. Bush has stepped in with his own steps to help stop foreclosure in the country. Of his different initiatives, the President has announced that the Federal Housing Administration (FHA) will form a new foreclosure avoidance initiative to help families refinance mortgages and thus stop foreclosure. Bush has also called on Congress to modernize FHA legislation that would lower down-payment requirements, allow the FHA to insure larger loans and give the FHA more flexibility in pricing. Bush further asked Congress to change a provision of the federal tax code so that it will no longer punish those families who are forced to sell their homes for less than their values.
• President Bush Introduces A Plan To Help Homeowners Through The Mortgage Crisis
Michigan Democrats Aim to Stop Foreclosure Culprit of Predatory Lending Practices
On August 31st, House Democrats unveiled the Michigan Home Loan Protection Act, comprehensive legislation that makes predatory lending practices the prey rather than the hunters in the collapsing subprime mortgage market. Of its many initiatives, the Michigan Home Loan Protection Act will ban predatory mortgage lending practices such as providing loans without having borrowers prove that they can pay them and encouraging borrowers to default on their loans. This legislation would also protect consumers from being driven to high-cost loans when more traditional loans are available, prohibit prepayment penalties and the financing of any points and fees which hide the true costs of a loan, and require vulnerable borrowers to get independent counseling from a certified, non-profit, third party counselor.
Senator Chuck Schumer of New York Aims to Stop Foreclosures from High-Interest Loans
In an effort to stop foreclosures caused by mortgage lenders who have granted loans to people who can’t afford them, Senator Charles Schumer has introduced a three-point plan to stop subprime mortgage loans. Schumer has proposed putting an end to ads which do not specifically stipulate whether and when the interest rates on a loan may go up. Schumer has also called for federal licensing of mortgage lenders as a means to weed out unscrupulous lenders. In a measure which can literally be described as hitting subprime mortgage lenders in the pocket, Schumer has submitted a Senate appropriations bill stipulating that brokers who’ve issued subprime loans contribute their own money to a $100 million fund that would be used to help people who need to stop foreclosure.
Updated Efforts to Stop Foreclosure as of August 31, 2007
$90,000 Grant to be Used to Help Stop Foreclosure in Missouri
Missouri Governor Matt Blunt recently announced that the Missouri Housing Development Commission will grant $90,000 to NeighborWorks American and Beyond Housing to help stop foreclosure in Missouri. The $90,000 award will be used in conjunction with the Missouri Homeownership Preservation Network, which is a partnership among housing experts in St. Louis, Kansas City and Springfield, MO. In a press release, Blunt described homeownership as the "American dream" and said that it is the goal of this grant and partnership to help Missouri homeowners maintain that dream.
Connecticut Governor Launches Stop Foreclosure Hotline
In an effort to help Connecticut families stop foreclosure, Governor Jodi Rell recently announced the formation of a Mortgage Foreclosure Assistance Hotline. Families who need to stop foreclosure in Connecticut can call into the hotline for guidance and advice on what to do next. Rell said the Connecticut foreclosure hotline will provide people with the resources to explore how to stop foreclosure and ultimately represents the government's commitment to helping its citizens.
Updated Efforts to Stop Foreclosure as of August 24, 2007
California Homeowners & Consumer Advocates Urge Senate Committee to Stop Foreclosure & Improve Lending Practices
Homeowners and consumer advocates convened at a California Senate hearing earlier this week and urged legislators to come up with means to help families stop foreclosure and improve mortgage lending standards. Some advocates even called for a moratorium on California foreclosures, especially considering that more homeowners are expected to face foreclosure in the state with higher payments kicking in on subprime loans. California foreclosure filings quadrupled this past July as compared to that month a year ago.
Also at the hearing, California Senator Michael Machado detailed two pending bills that would try to prevent lending abuses in the state. One of those bills would mandate that lenders strengthen their underwriting standards, especially when it comes to consumer disclosures. Machado’s other bill would protect appraisers from being pressured by lenders looking to artificially inflate home values.
North Carolina Governor Signs Another Mortgage Reform Law
About a week ago, North Carolina Governor Mike Easley signed a law issuing some more changes to the mortgage laws in the state. Under the new law, lenders are now required to make sure that homebuyers can afford the terms of their loan. The new mortgage law gives homeowners more power in contesting foreclosure and also limits fees on mortgage loans. A Charlotte Observer story indicated that this law, in combination with two foreclosure laws (see July 10th update for more context) signed by Easley this summer, represent the most comprehensive reforms to North Carolina mortgage laws since 1999.
Updated Efforts to Stop Foreclosure as of August 21, 2007
Better Business Bureau Provides Tips for Those Who Need to Stop Foreclosure
With possibly 1.7 million homeowners at threat of losing their home to foreclosure in the next couple of years, the Better Business Bureau is warning homeowners about foreclosure rescue scams. The BBB detailed last week that foreclosure rescue scam artists will continue to look to take advantage of desperate homeowners trying to stop foreclosure in the next couple of years. The BBB has already heard horror stories of foreclosure rescue scams in all 50 states. With that said, the BBB has provided some tips to homeowners who need to stop foreclosure, including:
- contacting the BBB or requesting a free Reliability Report at www.bbb.org prior to paying any foreclosure "rescue" company;
- talking to your lender first about possible means to restructure your loan or refinance;
- never signing a contract under pressure or transferring ownership of your home;
- asking someone you can trust to review any paperwork that you may be asked to sign; and
- filing a complaint with your BBB if taken advantage of by an unethical foreclosure rescue company.
Updated Efforts to Stop Foreclosure as of August 17, 2007
Democratic Presidential Hopeful Announces Legislation to Stop Foreclosure
Senate Banking Committee Chairman Chris Dodd has said that he is drawing up legislation to regulate subprime mortgage lenders in the wake of the current foreclosure epidemic. A Democratic Senator from Connecticut, Dodd was described in a Bloomberg.com story as saying that it's time to make subprime lenders accountable and responsible for making sure that prospective homeowners could afford their mortgages. Dodd, who is also running for the Democratic presidential candidacy, also said in the story that he is glad to hear that opponent Hillary Clinton is also addressing the foreclosure crisis. Read more about Clinton's efforts to stop foreclosure in the article below:
• Democratic Presidential Hopefuls Offering Early Foreclosure Solutions
Updated Efforts to Stop Foreclosure as of July 27, 2007
New Hampshire Governor Signs Foreclosure Rescue Scam Law
In an effort to stop foreclosure rescue scams in New Hampshire, Governor John Lynch signed House Bill 365 into law on July 24th. Specifically, this New Hampshire foreclosure legislation will create new standards for pre-foreclosure sales, require foreclosure consulting services to disclose more information to borrowers, and impose new penalties for those people who take advantage of homeowners who need to stop foreclosure. Governor Lynch has also announced that the New Hampshire Banking Department will begin to hold information sessions in the next couple of months to provide help to homeowners on the verge of foreclosure.
Massachusetts Plan Aims to Stop Foreclosure by Hitting Lenders Hard
Massachusetts has been one of the most aggressive states this year in terms of finding creative solutions to stop foreclosure. A current plan would aim to stop foreclosure in the state by making it a financial incentive for lenders to avoid this possibility by offering borrowers fair loans. Specifically, this plan would require mortgage lenders that foreclose on homeowners to pay $5,000 for the relocation and administrative costs incurred by nonprofit agencies trying to help displaced people find a new home. This plan is in its preliminary stages, but it is an interesting one to say the least.
Updated Efforts to Stop Foreclosure as of July 20, 2007
New Legislation Targets Predatory Lending Practices in Subprime Industry
Last week, members of the House Financial Services Committee introduced legislation targeting unfair practices within the subprime lending industry. Specific, Representatives Spencer Bachus of Alabama and Paul Gillmor and Deborah Pryce of Ohio introduced the Fair Mortgage Practices Act (H.R. 3012). Among its many initiatives, this legislation would create a national registration and licensing system for mortgage originators, simplify disclosures to borrowers, encourage lending institutions to evaluate whether a borrower can actually repay a loan, and provide increased support for housing counseling.
Legislators Urge for the Need to Stop Foreclosure in Maryland
Did you know that the Maryland foreclosure ranking went from 40th in the nation to 18th in June? Maryland Labor Secretary Tom Perez and Montgomery County Executive Isiah Leggett certainly have and are planning to review existing foreclosure laws and regulations in the state and then make recommendations for change to Governor Martin O'Malley. The group has also formed a Maryland foreclosure task force to educate homeowners on ways to avoid foreclosure and to help those people who are in danger of losing their homes or need to stop foreclosure.
Updated Efforts to Stop Foreclosure as of July 13, 2007
Massachusetts Aims to Stop Foreclosure via Creative Means
Governor Deval Patrick's administration has been especially aggressive this year in trying to stop foreclosure in Massachusetts. The state's latest measure to help desperate borrowers refinance their mortgages and keep their property includes raising cash through the sale of bonds. MassHousing, the state's housing agency, will sell $60 million in bonds and use the money to provide foreclosure prevention counseling to homeowners and also help those borrowers behind on their mortgages refinance risky subprime loans into traditional fixed-rate loans. Fannie Mae, the federally sponsored buyer of home mortgages, will contribute $190 million to this new program in Massachusetts.
Denver Foreclosure Task Force Issues Recommendations to Stop Foreclosure
Did you know that Denver has had an estimated 400 percent increase in foreclosure rates between 2002 and 2006? Certainly aware of this estimate, the Denver Foreclosure Task Force recently issued a report with its four-part plan for reducing foreclosure totals in the future. The first goal involves stabilization, or working with industry representatives to provide earlier warning notices to prevent foreclosure. From here, the plan entails educating and counseling homeowners on all phases of home ownership and borrowing. The third arm of this plan involves providing foreclosure prevention and intervention services for people who may need to stop foreclosure. The plan concludes with crafting and enforcing legislation and policy that will educate homeowners on terms and conditions related to foreclosure.
Suburban Chicago Mayors Stress the Need to Stop Foreclosure
A group of suburban Chicago mayors recently visited lawmakers in Washington and urged for more assistance in stopping the foreclosure problem back home. The Metropolitan Mayors Council specifically asked Illinois congressional representatives and the Federal Reserve Board for more money for foreclosure prevention and financial education services. Citing a statistic that nearly 30,000 homes were foreclosed in the Chicago area in 2006 and noting that this total marked a 36 percent increase from the year before, the Metropolitan Mayors Council urged the federal government to make lenders take more steps before being able to foreclose on a property.
Updated Efforts to Stop Foreclosure as of July 10, 2007
New Laws to Stop Foreclosure in North Carolina
Last week, Governor Mike Easley signed into law two bills that would aim to stop foreclosure in North Carolina. Specifically, the new North Carolina foreclosure laws will make mortgage fraud illegal in the state and also set up a registry to help identify and prosecute mortgage lenders who have acted fraudulently to scam people out of their homes. In addition to these new foreclosure laws in North Carolina, two other similar bills are awaiting action. One of these bills would require mortgage lenders to determine whether a borrower could afford a loan. The other pending piece of legislation would not only increase the state's regulation of mortgage lenders who collect mortgage payments but also allow homeowners to sue loan collectors to stop foreclosure.
Updated Efforts to Stop Foreclosure as of July 6, 2007
County Treasurer Strives to Stop Foreclosure in Ohio
With Ohio ranking first in the nation in the number of home foreclosures, Columbiana County Treasurer Nick Barborak is at least trying to do something where he lives. Barborak has established a local Save Our Homes task force to address the record 530 foreclosures that took place in Columbiana County last year. Barborak is also expected to team up with Ohio Governor Ted Strickland and State Treasurer Richard Cordray to develop a program educating Ohio homeowners on how to avoid foreclosure.
Updated Efforts to Stop Foreclosure as of July 2, 2007
National Campaign Aims to Stop Foreclosure
Last Wednesday, 16 national markets began taking part in the NeighborWorks America's campaign to prevent and stop foreclosures in the United States. The goal of the program is to get financially distressed homeowners to reach out for counseling as soon as possible to potentially help them avoid or even stop foreclosure. As part of the campaign, counselors will mediate between borrowers and lenders and help them explore solutions which may prevent future foreclosures from ever occurring.
Updated Efforts to Stop Foreclosure as of June 29, 2007
Massachusetts Attorney General Trains Lawyers Looking to Help People Stop Foreclosure
Many Massachusetts lawyers who have promised to help at least one family stop foreclosure in the state without charging any money recently received training on how to do so from Attorney General Martha Coakley's Office. Approximately 150 lawyers showed up to the training on June 20th and June 21st, with all of them agreeing to take on at least one pro bono case. Coakley expressed her excitement that so many lawyers have stepped up to the plate and volunteered their time to help people stop foreclosure in Massachusetts.
Need to Stop Foreclosure near Pittsburgh? New Hotline Established
The Allegheny County Sheriff's office has set up a new hotline to assist those people who may need to stop foreclosure in the area. Basically, the hotline will serve as a means for people to get pointed to other organizations that may help them stop foreclosure in and around Pittsburgh. The hotline will operate four hours per day, from nine to 11 in the morning and one to three in the afternoon.
Updated Efforts to Stop Foreclosure as of June 26, 2007
Foreclosure Relief Program Aims to Stop Foreclosure in Kentucky, Ohio and Tennessee
The Federal Home Loan Bank of Cincinnati is launching a new program that would advance $250 million to member financial institutions as a means to help people in Kentucky, Ohio and Tennessee stop foreclosure. These funds will be used by member institutions to help homeowners on the verge of foreclosure refinance their mortgages on more favorable terms.
Foreclosure Hotline Advertising Campaign Set to Kick Off Nationally
With more and more people needing to stop foreclosure in the United States during this recent crisis, it has been quite normal to witness the development of hotlines to help people avoid losing their homes. With that said, a national campaign is set to kick off via television, radio, print and other mediums to help direct people on the verge of foreclosure to hotlines which can help them get the advice they need to save their homes.
Updated Efforts to Stop Foreclosure as of June 22, 2007
Bill to Put Its Foot Down on New Hampshire Foreclosure Scams
Negotiators in the New Hampshire House and Senate recently reached a compromise on a bill that would protect homeowners from foreclosure rescue scam artists. Nashua Senator David Gottesman has introduced a bill that would impose tough new standards on pre-foreclosure sales and foreclosure consulting services. Specifically, this bill would give people the right to cancel pre-foreclosure sales agreements and foreclosure consulting contracts within a certain amount of time. This bill would also require full disclosure of the terms of any deal or contract. Homeowners would have a right to 90 percent of any equity lost in a pre-foreclosure sale while violators would be subject to jail time.
Help on the Way for Ohio Homeowners Whom Need to Stop Foreclosure
For those families who may need to stop foreclosure in Ohio, relief may very well be in sight thanks to a partnership between the state's housing finance agency and US Bank. The Ohio housing financing agency announced on June 19th that it will team up with US Bank to offer fix-rated mortgages to homeowners facing foreclosure. The effort represents just another means to quell the Ohio foreclosure crisis.
Updated Efforts to Stop Foreclosure as of June 19, 2007
Rescue Fund Program Aims to Stop Foreclosure in New Jersey
New Jersey averaged one foreclosure filing per every 264 households during the first quarter of this year; a rate which is up 27 percent from the previous quarter and 35 percent from the first quarter of 2006. In an effort to stop foreclosure in New Jersey, a rescue fund has been created to help homeowners in need. Specifically, eligible borrowers would be allowed to refinance sub-prime or adjustable rate mortgages into long-term fixed rate mortgages with more reasonable terms under the New Jersey rescue fund. Pennsylvania and Delaware are two states with similar mortgage assistance programs.
As Name Suggests. Foreclosure Prevention Task Force Aims to Stop Foreclosure in Ohio
Ohio Governor Ted Strickland has taken several steps to stop foreclosure in a state which has found itself in the top ten for states with the greatest percentage of foreclosures per household. The Foreclosure Prevention Task Force has been established to tackle the Ohio foreclosure problem, which has been attributed to a loss of manufacturing jobs in recent years and loose regulations for licensing mortgage brokers and lenders. The Ohio Housing Finance Authority has also created the Opportunity Loan Refinance Program, which allows qualifying homeowners to refinance risky, adjustable-rate mortgages into a 30-year, fixed-rate mortgage.
Massachusetts Governor Files Mortgage Fraud Legislation
Just a week ago, Massachusetts Governor Deval Patrick filed legislation that would aiming to stop foreclosure deception in the state. Specifically, this bill would criminalize mortgage fraud, forbid abusive foreclosure rescue schemes, prohibit a lender from making an adjustable rate subprime loan unless a borrower opts out, and require a notice of intent to foreclose and right to cure.
Updated Efforts to Stop Foreclosure as of June 15, 2007
Ohio Sues Ten Real Estate Companies for Improper Actions
The state of Ohio has sued ten real estate companies for allegedly pressuring appraisers to inflate home values. A Bloomberg story detailed how a borrower who gets a home loan based on an inflated appraisal may eventually fall behind on payments and have a hard time selling or refinancing to pay off a mortgage. Just how urgent is the need to stop foreclosure and such actions in Ohio? In April alone, foreclosure filings jumped 135 percent as compared to the year before.
HUD Official Calls for Better Resources to Stop Foreclosure throughout the United States
On June 4th, the Secretary of Housing and Urban Development (HUD) urged Congress to pass legislation that would help stop foreclosure in the future for possible homeowners in distress without requiring the government to spend money. Specifically, Alphonso Jackson urged Congress to enact a proposal that would overhaul HUD's Federal Housing Administration and allow the FHA to raise the maximum amount it can insure in areas where housing costs are much higher. HUD also asked Congress for more funding for housing counseling so that people can utilize non-profit agencies for their problems.
Holding Licensed Mortgage Brokers and Lenders Accountable in Delaware
With the 2,644 foreclosure filings this year already surpassing a record in the state, officials are looking for solutions to stop foreclosure in Delaware. With the rise in Delaware foreclosure filings attributed in large part to the prevalence of subprime loans in recent years, Delaware Bank Commissioner Robert Glen has said that his office will pass new regulations requiring license mortgage brokers and lenders to inform borrowers of the risks of these types of loans.
Updated Efforts to Stop Foreclosure as of June 7, 2007
Mortgage Foreclosure Rescue Schemes Banned in Massachusetts
On June 1 st, the state of Massachusetts banned foreclosure rescue schemes in which lenders promise to help homeowners who need to stop foreclosure but often take possession of the properties themselves. State Attorney General Martha Coakley was described in a Reuters story as saying that the emergency measure would take effect immediately and last for 90 days. The story added that a record 19,487 homeowners filed for foreclosure in Massachusetts last year, most of which have been blamed on subprime loans.
Colorado Governor Signs Five Foreclosure Bills into Law
As previously detailed here at Foreclosure-Fighter, numerous bills that would aim to stop foreclosure in Colorado have been signed into law by Governor Bill Ritter. These new Colorado foreclosure laws address a wide variety of issues, from strengthening existing mortgage fraud laws and prohibiting improper inflating of real estate appraisals to requiring mortgage brokers to register with the state and spell out their ethical responsibilities to consumers. Not previously mentioned is Senate Bill 249, which will charge insurance companies an annual fee to pay for analysis and enforcement of the industry.
Updated Efforts to Stop Foreclosure as of May 31, 2007
New York City Foreclosure Hotline Providing Some Help
Nearly a month ago, New York City set up a foreclosure hotline to help people who many need to stop foreclosure, and close to 700 calls have been received. About half of those callers have had cases opened. With foreclosures expected to surpass 15,000 in the city, the hotline is striving to help people explore different options to manage their mortgage payments and stop foreclosure if necessary.
Ohio Residents Urge Congress to Stop Foreclosure in the State
On May 21, more than 100 residents attended a hearing held in downtown Cleveland by area Congressman Dennis Kucinich on the foreclosure problem in the state. The 2½ hour session was marked by community leaders, public officials, researchers and banking experts urging the need to stop foreclosure in Ohio's inner city neighborhoods. These participants also called out the Federal Reserve Bank for failing to monitor subprime loans in Ohio and live up to its regulatory responsibility. As just one example of the problem, Cuyahoga County Treasurer James Rokakis revealed that nearly half of the subprime loans in the area are in foreclosure or delinquent.
Updated Efforts to Stop Foreclosure as of May 29, 2007
Study to Examine Colorado Foreclosure Crisis and Educate Consumers
Senator Peter Groff of Denver recently unveiled plans for a foreclosure study and education program in Colorado, which has been hit by a record number of foreclosures. Teaming up with educator Rickie C. Keys, Groff hopes that such a program would be able to stop foreclosure levels in poor and minority neighborhoods. The study will examine 10 issues, including financial services and crime prevention, and also determine if there are enough services available for people who need to stop foreclosure in Colorado.
Five Bills Aim to Stop Foreclosure Problems in Colorado
Colorado has been described as the Wild, Wild West of mortgage fraud, and its governor is aiming to put a stop to these foreclosure problems and this terrible reputation. Colorado Governor Bill Ritter is expected to sign into law five bills that would attack phony home appraisals, real estate agents whom pressure lenders and appraisers, and of course, unscrupulous mortgage brokers and title companies that have taken advantage of people who need to stop foreclosure in the state.
Updated Efforts to Stop Foreclosure as of May 22, 2007
Amended Bill Aims to Stop Foreclosure Fraud in New Hampshire
With the number of foreclosures in New Hampshire increasing by 95 percent between the first quarter of 2006 and the first quarter of 2007, one state Representative introduced a bill in January to examine this problem in the state. What Representative Tom Donovan of Claremont learned in the process was just how big of a problem New Hampshire mortgage fraud has become. Consequently, an amendment to the bill would target foreclosure rescue scammers in the state.
Updated Efforts to Stop Foreclosure as of May 15, 2007
Foreclosure Moratorium Called for in Pennsylvania
In order for state officials to set up a refinancing fund to help homeowners who may need to stop foreclosure, Pennsylvania lawmakers have urged the subprime mortgage industry to enact a voluntary moratorium on foreclosures in the state. Such a moratorium would help those families with subprime loans that are set to kick in and adjust this year. These hikes could result in some families paying an additional $150 on their mortgage payments each month.
Massachusetts Governor Aims to Stop Foreclosure in the State for at Least Two Months
Massachusetts Governor Deval Patrick has called for the delay of foreclosure proceedings on a "case-by-case" basis for any homeowner in the state who has filed a complaint with the Commonwealth's Division of Banks. Massachusetts is the first state in the nation to stop foreclosure in the meantime with the goal of aiding families in need.
Arizona Legislation to Limit Foreclosure Powers of Home Owners Associations
Arizona legislators have passed a bill that would stop foreclosure proceedings on property owners by home owners associations. This legislation would also limit associations from collecting on a lien unless the property owner makes at least $150,000 in profit. This legislation now heads to the office of Arizona Governor Janet Napolitano for her signature.
Updated Efforts to Stop Foreclosure as of May 8, 2007
Denver Foreclosure Bills Closer to Approval
Four bills aiming to stop foreclosure in Colorado have moved one step closer to approval. Two of these Colorado foreclosure bills would specifically monitor the conduct of mortgage brokers while another one would make it a crime to pressure an appraiser or falsify a home appraisal. Recent Joint Economic Committee data revealed that Colorado leads the nation in the dubious distinction of having the greatest percentage of foreclosures per household. Last year, there was one Colorado foreclosure for every three households!
Nonprofit Groups Steps Up to Help Stop Foreclosure in Baltimore
The Neighborhood Assistance Corporation of America is working with Bank of America and Citigroup to help combat foreclosures in Baltimore and throughout the country. This 18-year-old housing advocacy group plans to offer counseling sessions on subprime loans for Baltimore families in the next couple of weeks. A Baltimore Sun story says that there were more than 25,000 foreclosures in the city from 2000 through April of last year. The story added that one in eight subprime loans were delinquent in the state of Maryland from the end of 2005 to the end of last year.
U.S. Senators Introduce Bill to Stop Foreclosure
U.S. Senators Sherrod Brown (Ohio), Charles Schumer (New York) and Robert Casey (Pennsylvania) have introduced legislation that would aim to stop foreclosure throughout the country by helping struggling homeowners and bolstering the penalties for shady mortgage brokers and lenders. One aspect of his proposed foreclosure law includes allocating $300 million in federal funds to nonprofit agencies that are HUD-certified. These agencies would then use these funds to provide consumer counseling and help homeowners who may need to stop foreclosure by negotiating more favorable terms with lenders.
Foreclosure Prevention Hotline Launched to Stop Foreclosure in Queens
City Comptroller Bill Thompson has recently launched a foreclosure prevention hotline for families who may need to stop foreclosure in Queens. City residents can call the hotline, get advice about their situation and even be referred to non-profit organizations for more assistance. Queens is on pace for 15,000 foreclosure filings, numbers which two times more than what they were last year.
Updated Efforts to Stop Foreclosure as of May 1, 2007
Community Organization Aims to Stop Foreclosure in Michigan
With more than 400,000 homes landing in Michigan foreclosure during the last three months, one organization is try to curb the foreclosure problem in the state. The Association of Community Organizations for Reform Now (ACORN) has started a new outreach program that will provide housing counseling and loan restructuring assistance to families in Michigan who need to stop foreclosure. ACORN members say that they are aiming to reform lending practices and will go door-to-door over the next couple of months and offer their assistance. Read about the high number of foreclosures in Detroit, Michigan here.
U.S. Representatives Call for Federal Foreclosure Study of the Subprime Market
U.S. Representatives Barney Frank (Massachusetts) and Spencer Bachus (Alabama) are seeking solutions to the increase in home foreclosures in the country and have thus called for a federal study of the subprime mortgage sector. Specifically, these U.S. Representatives want to examine what caused the recent surge of foreclosures, what communities have been decimated the most, and what can be done to stop foreclosure in the subprime mortgage sector. Frank added that the House Financial Services Committee will consider drafting future legislation on how to stop foreclosures from subprime loans.
Massachusetts Governor Pushes Several Measures to Stop Foreclosure in the State
In an effort to help families stop foreclosure in Massachusetts, Governor Deval L. Patrick recently announced several initiatives to achieve this goal. One of Patrick's measures includes educating homeowners who may soon need to stop foreclosure in Massachusetts via an enhanced hotline, new awareness campaign and referrals to honest loan counselors. Other proposals include drafting legislation to increase the penalties for mortgage fraud and bolster the protections for consumers, and initiating regulatory changes that would require even more licensing and education for mortgage lenders and brokers.
Updated Efforts to Stop Foreclosure as of April 24, 2007
Numerous Bills Proposed to Stop Foreclosure in North Carolina
With North Carolina foreclosures affecting a record number of families, local legislators and consumer protection groups are looking to stop the foreclosure problem in the state. A recent story in The Charlotte Observer detailed how there were more than 45,500 foreclosure filings in North Carolina in 2006. With that in mind, proposed foreclosure laws in North Carolina would aim to stop foreclosure by attacking various related problems, including subprime mortgage lenders and illegal foreclosure actions. Read more about the efforts to stop foreclosure in North Carolina here.
Massachusetts Attorney General Fights Foreclosure Rescue & Mortgage Fraud Schemes
In an effort stop foreclosure rescue and mortgage fraud schemes in Massachusetts, Attorney General Martha Coakley recently filed lawsuits against 19 individuals and businesses involved in unfair and deceptive business practices. One of the two lawsuits alleged that the defendants preyed on residents facing foreclosure in Massachusetts by tricking them into selling their homes after originally promising them to help stop foreclosure and keep their property. The mortgage fraud lawsuit claimed that the defendants altered the mortgage deed of a property by changing its purchase price by more than $150,000 and also modifying the name of its grantee.
U.S. Senator to Draft Bill to Stop Foreclosure on Subprime Loans
U.S. Sen. Jack Reed (Democrat-Rhode Island.) recently said that he plans to draft a bill that would aim to stop foreclosures resulting from subprime loans. In March, the Mortgage Bankers Association reported how the number of new foreclosures on subprime loans in the fourth quarter of last year broke a 37-year record. With such disturbing information in mind, Reed said that he intends to stop foreclosure on subprime loans with a bill that would provide more financial counseling, education and support to both homeowners and mortgage lenders and also allocate more money for state homeownership protection centers.
Updated Efforts to Stop Foreclosure as of April 17, 2007
Governor Ted Strickland Addresses Ohio Foreclosure Problems with Fixed-Rate Loans!
With the Buckeye State having one of the highest foreclosure rates in the country, Governor Ted Strickland recently formed a foreclosure task force to address the important question of how to stop foreclosure in Ohio. One proposed solution to stop foreclosure in Ohio pertains to allocating $100 million in taxable bonds for the financing of fixed-rated mortgages for current residents who may very soon face foreclosure because of subprime, adjustable rate mortgages. Read more about this proposed solution to stop foreclosure in Ohio here.