California Attorney General Calls for Halt of Foreclosures

Posted on February 29, 2012


According to U-T San Diego, Kamala Harris is calling for a stop to all foreclosures on loans owned by Fannie Mae and Freddie Mac in the state of California.  

If this would happen, it would put a lot of pressure on other states to do the same thing.  The inventory of real estate on the market is expected to dramatically increase due to all the foreclosed homes being put on the market.  That means that home values would fall further.

If Kamala Harris’ suggestion is implemented, it would limit how many new homes are on the market either to rent or own, and would therefore put a stop to the downward slide in real estate prices.  

It will be interesting to watch if California will lead the nation in this innovative solution to the foreclosure and mortgage crisis.