Anti-foreclosure legislation took its next step in the Legislative process. Whether it was a step forward or a step backwards depends on who you ask. As you may recall, the House passed legislation (which the League supported) creating a 90-day window before a home could be foreclosed. During that time, the lender and homeowner would work to find a way to have the homeowner make the payments and avoid foreclosure. The Senate took up these bills yesterday. The Republican majority in the Senate took out judicial foreclosure provision that requires a lender to work with a borrower who qualifies for a loan modification under the FDIC workout program. They said that the bills bring everyone to the table and the language stripped out would cause unnecessary delays, higher costs, and government interference. The Democrats, though, said that the stripped language forces lenders to negotiate with borrowers, which they don’t always do now, because of judicial intervention. They also said this will allow lenders to start foreclosure hearings earlier. Sen. Richardville and Rep. Coulouris will continue to work together on this legislation for the best possible solution.
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