Upcoming Foreclosures

Should the government put a moratorium on house foreclosures?

I received an email petition today about freezing foreclosures. I did not sign the petition. I am all for people not ending up on the streets but I don't understand how they expect this to work. Why would anyone pay if they could not be evicted? Are we going to give these people their houses and make the taxpayers eat the loss? For the record I know the mortgage industry is as much to blame as the buyers. Banking should never have been deregulated to allow all the idiotic loan scams and no down payment home purchasing that went on. That being said... Houses are still overpriced and the market needs correction. Maybe they could freeze interest rates. If your house has been on the market for 6 months and has not sold you are asking too much for it. Home owners need to wake up to the bitter reality that the real estate bubble has burst. If anyone can explain how freezing foreclosures can work I would like to hear it.

Public Comments

1. The government does not have any rights in the matter as long as lenders follow the law. It might make business sense to slow things down, but lenders will have to do that on their own.
2. NOPE, not enough money to stop all foreclosures. Can slow them down, lengthen the cure period, etc. Bank lobby is too powerful for this to happen and with the failures, they have leverage. The market is making corrections and it is very painful for those who are upside down on their mortgages and those wanting to sell their homes. It's a lousy market and homes are taking 6 months and longer to sell, it doesn't mean it's overpriced. Sales are down dramatically, period.
3. absolutely not, while I know there are people who can not afford their mortgages, there are those that can and have chosen to walk away.