Posts Tagged ‘bluff’

Bills are being rushed through to help both borrowers and renters continue to stay in the houses that are their homes. In Minnesota the lawmakers dubbed the foreclosure situation as historic. They initiated a package of 10 bills to help the foreclosure victims. More than a dozen foreclosure related bills are in the Legislature.

In the Twin Cities (seven counties) foreclosures doubled in 2007 as compared to 2006. In January Hennepin and Ramsey Counties set records in foreclosure listings. The reason was unmanageable sub-prime mortgages, unemployment, credit crunch and the like. Although core city suburbs like Bluff, Frogtown and North Minneapolis have been hit the epidemic is also spilling over onto the suburbs hitting farm towns.

A close parallel is being drawn to the Great Depression and most of the experts feel that this situation will drag on up to 2009. Others say that foreclosures will continue for many years. Allen Fishbein, the director of housing and credit policy for the Consumer Federation of America said there is concern about the sweeping effects of foreclosure penetrating all levels of the market. Foreclosures have also badly affected the lenders and they have responded positively to the appeal of President Bush to modify loans.

In 2007 Minnesota passed the strongest anti-predatory laws in the country. The new bills aim to take stiff measures like preventing cutting of essential supply like water, gas and heating so long as the renters continue to be current. Another bill makes it compulsory for lenders to link borrowers with foreclosure counselors to sort out matters. A coloured pre-foreclosure notice will have to be mailed to the borrower giving information about counseling. Yet another bill requires the setting up of an electronic system by the state to monitor foreclosure movements. It is a pity that till date an archaic method still continues to hold sway.

A flat moratorium on foreclosures have not been considered as this is something unrealistic and unconstitutional. Quasi moratorium proposals are being considered. The Minnesota Sub-prime Foreclosure Deferment Act of 2008 would for the time being defer foreclosure proceedings for a year under certain conditions – the main one being that the borrower must be occupying the house in dispute.

The package of bills is the outcome of the working together of 38 organizations representing the government, lenders and communities at all levels. One of the salient points is that attention is being given to the plight of the renters.

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