Saturday, October 9, 2010

Momentum builds for full moratorium on foreclosures

NOTE: Please read full article by clicking link: I pulled excerpt from the middle which discusses bankruptcy changes that could be considered.

Momentum builds for full moratorium on foreclosures:
"The Senate banking committee's chairman, Christopher J. Dodd (D-Conn.), said Friday that his panel will hold hearings Nov. 16 to investigate the morass.

Rep. Edolphus Towns (D-N.Y.), chairman of the House Committee on Oversight and Government Reform, said the top 10 mortgage lenders should immediately suspend foreclosure proceedings in all states.

'The implications of ignoring the foreclosure problems are far too great to be ignored,' he said Friday.

In addition to a national moratorium, some lawmakers are discussing reviving a bill that would give bankruptcy judges the power to modify loans and reduce principal to market value. The bill passed in the House but did not make it through the Senate.

As the House Financial Services Committee convened a foreclosure-fraud working group to begin discussing ideas for other legislative remedies, the banking industry began to fight back against the notion that the paperwork problem was more than a techni"

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