Washington Post Article on Halting Foreclosures

Posted on December 3, 2010


Recently in the Washington Post (“Foreclosure Moratorium would help Recovery 10/24/10) Senator Sheldon Whitehouse (D-Rhode Island)advocated a national foreclosure moratorium, suggesting that the mortgage holders could take the time to “clean up” their banking practices and possibly reduce  mortgage principle to reasonable levels.
But this would take government intervention, and there is the question: Is government responsible for crises like this? One would think that the government ought to take an interest—after all, with all the liar loans, encouraging those with insufficient means to borrow money for houses they couldn’t afford; this is as serious as committing a robbery or a con artistry, which the government tries to protect its citizens against.
It was a quick and dirty process, where notes were improperly filed and other documents neglected and titles often were clouded to the houses being sold.
After the loans were made, the lenders often promptly sold them to various investment houses, where they became mortgage backed securities. This led to much profit for the banks, but played hell with the mortgagors when they couldn’t make the payments.
As we can’t trust the lenders and their shoddy practices, it would seem that even the most libertarian philosopher would understand that calling a halt to the foreclosures until things have been worked out would be sensible.

Stop foreclosure at Axsmith LawChristine Axsmith, Esq. has experience stopping illegal foreclosures in Washington, DC and Maryland.