Legislating Away Unpleasant Foreclosures

California’s Attorney General has called for a halt to foreclosures in the state.

Such a move would gum up the free market, render housing business less efficient, and make investors less likely to put money into housing.

Ahh, but it feels good to call for an end to foreclosures. It is emotionally satisfying. It doesn’t do good, but it feels good to stop the free market in its tracks and to try to legislate away bad news.

Why would bankers want to extend mortgage loans when the terms become increasingly onerous?

For all the time about the ills of robo-signing, I have not heard of one example of a homeowner up to date on his mortgage payments being thrown out of his home.

The AP reports: Harris’ increased ability to defend homeowners would be paid for with a $25 fee on each notice of default filed by a lender. Prosecutors would have four years to bring charges in foreclosure-related crimes, up from the current one year.

The bills would give renters more notice before they have to vacate a foreclosed home and give cities more tools to fight neighborhood blight from vacant houses. Lenders would have to provide borrowers with a single point of contact if they need to discuss foreclosures or refinancing, without getting passed around to different departments.

Wednesday’s announcement comes days after Harris called for a halt to foreclosures throughout California.

Last week, she asked the Federal Housing Finance Agency, which oversees loans backed by Fannie Mae and Freddie Mac, to suspend foreclosures and consider reducing mortgages for at-risk homeowners.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2012/02/29/state/n123821S75.DTL#ixzz1noRey7Rc

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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