There are a great many solutions being batted around the political arena these days for the rising number of foreclosures in our state and our country. Just two weeks ago the California state Senate narrowly defeated a bill that was designed to keep home owners in their homes longer. The bill would have forced banks to pay a $1,000 fine for everyday that they did not maintain a vacant property. While the bill was defeated in the California Senate a similar bill was introduced in the House 2 weeks ago. There is talk of increasing the conforming loan limits which will bring buyers back to the market even though these buyers will need to really show documentation and that they qualify for the properties.
In these turbulent times it is more important than ever to be up to speed on the laws surrounding home ownership, foreclosure and lending. Only educated, committed real estate professionals and lenders that are aware of what is going on out there can help clients to navigate these ever changing waters.
Will Foreclosure Legislation Help or Hurt?
2 comments • Coco Clayman-Cook • February 16 2008 05:29PMComments
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Coco - In my humble opinion the government caused the problems we are in. In September of 2005 President Bush mandated Freddie Mac and Fannie Mae in a state of the union address to ease the requirements for a buyer to obtain a loan. These loan instutitions did what they were given the free reign to do. The result is the foreclosure mess we are in. Whenever someone is given something without having to "earn it" they never respect as much. When buyers are required to take care of their credit and save their own down payment, the result is a responsible homeowner. The government should have never eased the requirements to become a homeowner and they should stay out of trying to save the housing market as it stands now.
If the governement does bail out the housing industry why should they not bail out the auto industry, airline industry, beauty salons & Mr. & Mrs. John Doe when they are in trouble?