Clinton Plans For Foreclosures

Posted in Foreclosure, January 2nd, 2008 |

Both Obama and Clinton are trying to impress the voters – both aspiring to be the next Presidential candidate.

Obama a 46-year-old senator form Illinois is also seeking the nomination from the Democrats for the highest post in the nation. Earlier this month he started off his campaign with the talk show star – Oprah Winfrey.

Clinton recently went into a huddle with senior economic adviser Laura Tyson and Senator Tommy Kilby (state) and Tennessee journalists to discuss her plans about stabilizing the foreclosure crisis that is affecting the locality.

In Tennessee there is one foreclosure for every 683 houses. It ranks 11th among the 50 states. Tyson stressed that Hillary Clinton was the first to acknowledge the gravity of the foreclosure crisis. The problem goes back to 2007. It is not just the house owners but an overall threat to the economy. Tyson also reminded that Hillary Clinton was previously the first lady. She had made many proposals – the latest being a three point plan to deal with the harsh truth of these record foreclosures. The predictions for 2008 and 2009 are gloomy with nearly 2 million facing foreclosure. As soon as these houses are lost the real estate market further slumps making it hard for other units that have not been foreclosed. It is a chain reaction. This downward spiraling affects the entire economy.

Clinton suggests an immediate moratorium on foreclosures coming under the sub-prime mortgage category. The interest should be frozen for five years. Secondly the federal government should help the setting up of counseling agencies to guide the foreclosure victims by creating a fund of $5 billion. It could kick off negotiations between lenders and borrowers to work out a viable solution.

Tyson had been chairperson of the President’s Council of Economic Advisers and also served as Director of the National Economic Council during the presidency of Bill Clinton. The driving force behind this plan is not just to help individuals facing foreclosure (although that is important) but also to save the overall economy of the country from disaster. If 2008 is allowed to see a repeat performance (or may be worse) of 2007 then the economy is bound to slow down, said Tyson.

In Shelby County the maximum number of foreclosures came from Tennessee during November with 1,712 in one month. Davidson county came next with 368 foreclosure listings. The picture is precariously grim.