Thursday, April 17, 2008

About the foreclosure moratorium bill

As neighborhoods in Queens, Brooklyn and upstate New York face an ongoing barrage of foreclosures, two state legislators have proposed a bill that they hope would stem the tide of unraveling mortgages.

Foreclosure Moratorium Bill Gains Traction in Both Houses

The bill calls for a year-long moratorium on foreclosures throughout New York. During the proposed 12-month respite, homeowners would be required to make court-ordered minimum monthly payments while renegotiating the terms with the lender.

Though the bill, authored by State Sen. Frank Padavan (R-Queens) and Assembly Member James Brennan (D-Brooklyn), has enjoyed bipartisan support in the Legislature, banking industry leaders say the measure will simply prolong the housing crisis by postponing the unavoidable.

Padavan said his bill, which has 24 co-sponsors in the Senate, could curb the spiral of foreclosures that have hurt property values, destroyed credit ratings and forced many out of their homes.

“It’s not a bail-out or an abdication of the homeowner,” said Padavan. “This helps the homeowner keep his home off the market, which helps the economy, and at the same time the bank would get a return on the mortgage with interest, rather than being forced to become a real estate broker.”

Both Padavan and Brennan have seen their districts hit particularly hard by housing problems stemming from the sub-prime mortgage crisis.

4 comments:

Anonymous said...

Padavan is clueless. This bill would do nothing but make a bigger mess of things.

Taxpayer said...

Here's a novel idea: Save enough money to afford a down payment (the larger the amount, the better), look only at homes that you can afford on your income, hire a real estate attorney to help with the transaction, maintain the home and property to retain its value, participate in community organizations whose purpose if to protest the community and homeowners.

Then, buy your home and be a good neighbor.

Can't afford a home right now? Wait. Wait for a foreclosure on a property whose "owner" failed to use common sense in its purchase.

His foreclosure is your bargain.

Outside of pandering, why would any elected official make it the government's (your) business to sand your earnings to someone who got greedy or stupid.

The tax dollars the politicians want to take from you could be better used by you to save for a substantial down payment on your new home, or your child's education, or, for that matter, your new car or fur coat.

It is not the government's business to pick up the mess others leave behind.

Taxpayer said...

" ...participate in community organizations whose purpose if to protest the community and homeowners."

Its much better to join organizations that will protect your interests, not protest them.

Regrets.

Anonymous said...

Hey, "TAXPAYER"... you have got to be one of the most short-sighted people to have ever breathed my air. What about us who waited... put down a good chunk of cash for a house that was well without our budget... only to lose my job in a market that is getting less and less stable. So unstable, in fact, that finding a replacement job at the same salary is nearly impossible. What then?

My house is on the bubble because of this very situation. This moratorium would be a Godsend to help us until we can get our legs, again.

Wake up and see the big picture, my friend. Not everybody has a life as rosy as yours...