Is a National Foreclosure Moratorium on the Way?

October 24th, 2010 in In The Media by cdpe0History would say, “Yes. I’ve seen this before.”

Since 2008, talk of foreclosure moratoria has emerged in the fourth quarter around the holidays, only to be lifted part-way through the first quarter with record numbers of foreclosures flooding the market. This is then followed by an increase in short sales as banks and homeowners work with educated real estate agents toward better solutions to foreclosure than not doing them at all.

As we’re seeing in the media lately, history is looking to repeat itself.

In a letter to the editor in the Washington Post this morning, Rhode Island Senator Sheldon Whitehouse spoke out about the benefits of a foreclosure moratorium, if for nothing else than to force major banks, servicers and securitized mortgage holders to reevaluate their foreclosure and modification practices.

Eviction and foreclosure are terrifying, emotionally disturbing events for homeowners, especially when compounded by the holiday season. But the question needs to be asked: Will the housing market recover more quickly if the banks are forced to halt their proceedings?
Here, History would say, “No. Not that I’ve seen.”

http://www.EugeneMills.com/