Archive for Friday, September 12, 2008

Democrats call for foreclosure freeze

September 12, 2008

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— Four Democratic senators urged the mortgage companies Fannie Mae and Freddie Mac on Thursday to temporarily freeze foreclosures on loans they hold.

The troubled companies, seized by the government Sunday, should help struggling borrowers swap their mortgages for more affordable loans and stay in their homes, the lawmakers wrote the new chief executives and federal regulator now running Fannie Mae and Freddie Mac.

It was the latest sign of mounting congressional pressure on James Lockhart, the director of the Federal Housing Finance Agency, to ensure that the companies use their clout in the mortgage market to help homeowners caught in the housing crisis.

The firms hold or guarantee some $5 trillion in outstanding mortgages, more than half the nation's total. The foreclosure freeze, which the lawmakers said should last at least 90 days, would not apply to all those loans.

Comments

jmadison 6 years, 9 months ago

Why not name the Senators involved in attempting to abrogate contracts? They are Sens. Schumer of NY, Brown of Ohio, Menendez of N.J., and Casey of PA.

Confrontation 6 years, 9 months ago

These banks have been screwing people for so long, and now they're getting what they deserve.

igby 6 years, 9 months ago

Here's the reality of this issue and what really goes on behind the troubled market. Lenders are getting screwed royal. These home's are being rented out to renters by the owners while the bank closing process is mired for at lease 6 to 12 months as it is now. The owners are already moved out and are renting these houses for cash and pocketing the money while screwing the banks until the sheriff comes with a writ of assistance to move out the occupants. The owners take the cash and rent themselves while the legal process is ongoing in the courts which can take up to a year. In the mean time the properties are trashed by renters and defaced beyond reasonable wear and tear. There is nothing the banks can do to stop this renting practice.

igby 6 years, 9 months ago

Did I mention no payments are made to the banks during this foreclosure period of 6 to 12 months. The owners pocket the money and many never pay taxes on the gains from this practice.

labmonkey 6 years, 9 months ago

You know, if someone bought an expensive Mercedes when all they could afford was a used Impala (or not even that), and it got repossessed, noone would feel sorry for this person. This is what in effect happened in the housing market. These borrowers signed a contract, they should live up to it without the government bailing them out. If they become forclosed on, they can rent....they won't be out on the street. Whatever happened to saving up for a 25% or more down payment on a house you can afford (that means 1/3 or less of your income per month going for mortgage payments) and having a lawyer represent you when you sign the contract (yes, I have listened to Bruce Williams in the past)? It got flushed down the toilet with all other fiscal disipline in this country.

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