Dem.Hansen Clarke:freezing foreclosures for two years...

Discussion in 'Wall St. News' started by ASusilovic, Oct 17, 2010.

  1. NEW YORK (TheStreet) -- Foreclosure delays implemented by big lenders, demanded by politicians and spurred on by the plaintiffs' bar could have a devastating effect on the housing market if dragged out over the next several months.

    In the realm of politics, lawmakers and attorneys general have taken a tough stand against banks' practice of "robosigning" foreclosure documents. In an effort to cast themselves as the new "sheriffs of Wall Street," politicians have issued a flurry of anti-bank statements ahead of a highly partisan election battle next month.

    "In the midst of a $700 billion Wall Street bailout, Congress still has no answers for struggling homeowners," said Michigan state Sen. Hansen Clarke, a Democrat running for Congress. "Michigan should take this opportunity to set a positive example for our nation by freezing foreclosures for two years, allowing people to stay in their homes and make reduced payments until they get back on their feet."

    http://www.thestreet.com/story/10889321/1/the-worst-case-foreclosure-scenario.html

    Ouch.
     
  2. These are all the slow and painful side effects from the 2008 bailouts. Had the govt not intervened these banks and their bad paper would have been exposed / cleaned up and settled for 10 cents on the dollar during their bankruptcy proceedings.

    Instead we will be dealing with these issues for the next 10 - 20 years. Free markets only works when free from manipulation.
    All bets are off now, no paper is immune from fraud claims.

     
  3. corelove

    corelove