Winning the Battle against Foreclosure

by Peter Vernon on Foreclosure Crisis

For the Massachusetts Alliance against Predatory Lending, the foreclosure crisis has claimed enough victims. It is definitely time to perform an emergency action that will finally address the issue and help millions of distressed homeowners nationwide.

According to the organization, there are actually three bills that could save the nation from the staggering negative effects of the foreclosure crisis and somehow help homeowners get back on their feet again. The said bills, which are in the Legislature, are as follows:

  • A Bill that calls for the moratorium on foreclosure filings particularly those involving subprime housing loans. This moratorium will last for six months and will allow distressed homeowners to look for effective and long-term solutions to their mortgage problems. The 60-day moratorium will also pick up after the 90-day forbearance.
  • A Bill that requires lenders to show a valid reason for evicting tenants of foreclosed homes including criminal activity and non-payment of rental fees. This way, the tenants will be able to stay in their homes even after the properties have been foreclosed. In a way, this will be advantageous to lenders since abandoned homes usually become targets for local vandalism.
  • A Bill requiring judicial foreclosure in Massachusetts. Currently, the foreclosure law in this state does not require the approval of the court. By allowing homeowners to have their day in court, they will be able to challenge or question the foreclosure.

These three bills are certainly designed to help homeowners as well as protect future borrowers. It is a fact that the present problems in the housing and mortgage industry stemmed from aggressive lending practices. For the organization, it is the troubled borrowers who require assistance from the government and not these predatory lenders.