Giving The People A Break – Not Just The Banks!
I am thankful for activists here in Baltimore who have shouldered the responsibility of urging the Baltimore City Council to provide support for homeowners here in the city facing the threat of foreclosure. As banks and billionaires receive support from Federal Gov’t funding; the question has been raised by many, “What about regular people?”
The Baltimore City Council has heeded the requests of local activists who are connected to a national network seeking to protect homeowners. This support comes in the form of Bill Number 09-0289. This bill will prevent homes from being foreclosed on until 365 days after the initial notice. In essence, it will create a moratorium on foreclosures in the city. The hearing on this bill will be on March 24, 2009 10AM.
A special thank you to City Councilman Bill Henry and Councilwoman Mary Pat Clarke sponsoring and shepherding this important piece of legislation forward.
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Heber,
I thought you were wise enough – politically astute enough – to recognize the crap coming out of city hall for what it is. This foreclosure moratorium bill is going to HURT the people not help.
Yeah we need a foreclosure moratorium – absolutley. Such a moratorium will (a) help homeowners, who are willing to pay, get back on their feet and stay in their homes and (b) help take some inventory off the market thereby relieving downward pressure on the housing market and eventually the entire economy.
A 365 day moratorium?!?! Heber do you realize how fast lenders would trip over each other to get the hell out of Baltimore City? Hard working folk who are not behind in their mortgages will have a hell of a time getting a mortgage or refinancing in the city. Remember bro – 92% of homeowners with a mortgage are not delinquent.
A better solution would be for the council to set a 90 day moratorium with conditions such as entering a workout and modification program with their lender. That would help keep folk in their homes and keep Baltimore City viable for lending to the low and mid income segments of the population.
Does anyone think before they write legislation?
You make good points, Tyrone and I know you have expertise in this field, but here’s the rub. These activists took ACTION, staged rallies, contacted legislators, gave them drafts of the bill, had them introduce it, and are planning to show up for the bill hearing in March in big numbers.
They did it.
My experience in talk radio leads me to believe that 99.9% of the people who call in with passionate and many times viable alternatives to what is – have no intention of committing the time, talent, and treasure to make their ideas live.
Toward that end, I would say if you believe that a 90 day moratorium with conditions would be better, then how getting the ball rolling to submit alternate legislation?
Are you familiar with current foreclosure code that is on the books? I’m curious as to what is already in place to support families threatened by foreclosure and if some form of what you describe is already in place. I don’t know.
One more quick comment. There is a developing trend in this country that anyone who is rich is evil and should pay some sort of price (with the notable exception of preachers – God gave them their wealth so it’s ok).
Stick it to the man! Seems to be the order of the day. The more we stick it to the man the more we stick it to ourselves. Sure go ahead – raise taxes on WalMart, they’re rich. In turn they will just raise prices on us.
Yeah let’s establish a 365 day moratorium on foreclosures. Good luck getting a mortgage for the $125,000 home on Federal street.
It all rolls down hill people. Sticking it to the man may feel good but it’s like crack – it’s a temporary high that, in the end, will hurt you.
Instead of worrying about “getting back” at the rich how about we tackle some real issues. Like lobbying, yes I said lobbying, for vouchers so that our talented chilren can get the best education possible. Just like Sasha and Malia.
Or waking up and throwing out corrupt politicians who hold their own self interest above that of the people’s. Those same politicinas who would sell us out for a handfull of gift cards.
Hey how about this one – instead of sticking it to the man how about getting the city to give (that’s right GIVE) some of these dilapadated properties over to citizens groups who will repair and refurbish them. Oh noooo – the city would rather hold on to them for the Baltimore Development Corp.
My brother – as you know I have zero power to, as you suggest, submit alternative legislation. I am not an lected council person nor am I the Mayor – in fact I’m not a city resident. What I have done is called Clarke’s office and given her my thoughts on why this is a bad idea.
In addition to that I have directly advocated with lenders (Bank of America, Countrywide and Carrolton Bank) to suspend foreclosures, temprarily, in order to (a) keep folk in their homes who are willing to pay and (b) stave the tide of foreclosures glutting the market. In fact a moratoriums and modifications help everyone involed.
The bank retains a mortgage customer who wants to pay, the homeowner stays in the home and the city keeps a tax base. You endagenr all of that with a 365 day moratorium.
Many banks have in fact started to place moratoriums on foreclosures. None has instituted a year long ban.
I have been in a new home outside of Baltimore County for almost 4 years and like a lot of other people, I was steered into a terrible mortgage product – a combination of fixed and adjustable loans that were all the rage several years ago. Although my wife and I were fortunate enough to make our payments on time, we knew that once one of the loans adjusted we would be at the max. We tried to use the mortgage refinance plan under the Bush administration – HOPE for Homeowners – but the program was difficult to access because the financial institutions were appraising homes way below market value and therefore no one was willing to refinance to a fixed mortgage. Fortunately we were able to negotiate with our loan company for a modification, but that was not a easy process – it took almost 90 days and a lot of red tape – and it almost felt like the lender would rather have us foreclose than workout a plan for us to stay in the home. That is why I am very unsure about the loan modification plan that President Obama is promoting. The NY Times did an article about this proposed plan and the potential glitches with it (http://www.nytimes.com/2009/02/17/washington/17housing.html). What Mary Pat Clark and her colleagues are proposing is great, but when you deal with government bailing out the common man, it often falls flat before having any real true effect. Look at the Thornton Bill for education funding. It was great in theory, but it has not had any impact for our most needy school systems. Before we know it, these same officials that are promoting this plan will be crying that the city is losing its tax base and has not money to support this legislation.
Nat I feel you. Anytime you get government beurocracy (sp) involved in anyhting it’s going to be filled with red tape. I think that at this point the banks are more willing to accept these workouts though.
I think they understand that this is not just folk being dead beats. This is something systematic and their profits are in danger.
Clarke’s plan appeals to the common man but does it help the common man? If someone needs a whole year worth of moratorium on a mortgage the question must be asked, “Can they afford it?”
Here is my plan that I have shared with severl memebers of the State legislature, Maryland’s Congressional delegation and Clarke
1. Banks and the City Should – Place a 90 day freeze on foreclosures
2. Banks Should – Create expiditious loan modiications that lower the interest rate, extend the term and/or take on delinquent payments to the back of the loan
3. Banks, the City and State Should – Require borrowers to show an ability to pay under the modified terms to qualify for a 10% property tax credit for one year
For those that are not having trouble paying their mortgage, 92% of owners, this will prevent a drop in the value of their homes by keeping foreclosures out of their neighborhoods
[...] faithinactiononline.com Reported here by: SPMG, 2 April 2009 [...]