Friday, March 27, 2009

Fix foreclosures first to fix the economy?

Should homeowners have the same right that investors and second homers already have, the right to get their mortgage modified if they file for bankruptcy? The Center for Responsible Lending thinks so, but not everyone.

by Broderick Perkins
© 2008 DeadlineNews.Com
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Deadline Newsroom - The Center for Responsible Lending says homeowners should have the same right that investors and second homers already have, the right to get their mortgage modified if they file for bankruptcy.

And, in President Obama's spirit of grassroots participation, maybe you can help make it so, according to the Center.

The Center offers a quick way to get your voice heard, with a form letter supporting a current federal legislative effort, "Help Families Save Their Homes" (Support H.R. 1106) for judicial intervention to allow distressed homeowners to seek loan modifications through the courts.

The legislation passed the House of Representatives and is on its way to the U.S. Senate for a vote

The effort is based on the premise that the economic downturn was spawned by the housing sector and fixing the housing sector first will help cure economic ills.

Go to: "Fix the Economy? Fix Foreclosures First!" to have your voice heard.

Keep in mind, some real estate experts say judicial intervention isn't the way to go.

Quincy Virgilio
2009 SCCAOR President

In Silicon Valley, CA, one of the most volatile housing markets, but also a bellwether market, leaders are in strong opposition of judicial intervention.

"The ability of bankruptcy judges to cram down mortgages will increase interest rates which will, in turn, lower affordability rates across the board," says Santa Clara County (Silicon Valley area) Association of Realtors SCCAOR President Quincy Virgilio.

"This is the wrong action to take, especially with the high affordability and low interest rates not seen in years. This legislation will further delay recovery in the housing sector."

Obviously, judicial intervention, when it comes to saving homes from foreclosure and the economy from further implosion, is a major talking point.

Talk amongst yourselves.

Research and debate the issue.

© 2008 DeadlineNews.Com

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop. Perkins is also a National Real Estate Examiner. All the news that really hits home from three locations -- that's location, location, location!

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