A new foreclosure Bill is expected to pass this week, granting home owners more rights and making it harder for banks to reclaim their assets when owners default on their mortgages. This is great news for homeowners in distress, but not necessarily for savvy buyers and investors looking for golden opportunities in a troubled housing market.
But the bigger issue is whether legislation is really the right move.
Given that most Americans have more debt than they can ever expect to repay, why wouldn’t the Government step in there too? Most importantly, how might this legislation affect our economy?
Keep these important questions in mind as you learn more about the foreclosure Bill discussed in the following New York Times article, including the points that have been highlighted below.
By MANNY FERNANDEZ
Published: June 22, 2008
“The bill that Gov. David A. Paterson and leaders of the State Legislature announced last week to address the subprime lending and foreclosure crisis was, for Albany, that rarest of things — an effective compromise.
“The legislation will change how subprime loans are made and regulated, and will alter the way many foreclosures are handled by the courts, establishing protections for homeowners that had not been in place.
“For housing advocates and some Assembly Democrats, the bill could have been stronger. Their push for a statewide one-year moratorium on foreclosures ultimately failed. For the state’s banking and mortgage broker industries, it could have been weaker. They argued that New York has seen fewer foreclosure filings than other states largely because of regulations already in place.
“But the end product — a bill expected to pass on Monday, the last day of the legislative session — appears to have struck a balance that satisfies nearly all sides, though housing advocates question the extent to which it will help thousands of homeowners most in need: Those going through foreclosures right now.”
