Hare Argues For a 90 Day Foreclosure Freeze

US Rep. Phil Hare has proposed that a 90 day freeze on foreclosure proceedings are introduced to assist people to have the time to try and avoid the foreclosure. He believes that during these 90 days the borrowers may be able to refinance or find another method to save their homes or investments.

Mr Hare like a lot of others is concerned particularly with borrowers whose poor credit ratings prohibited them from qualifying for prime market interest rates and those borrowers who have subprime category home loans. Unfortunately with rising interest rates these are the borrowers that suffer most from increases in their repayment amounts and are at most danger of not being able to afford the increase and thus defaulting on their loans.

Phil Hare in a recent news conference held at Rock Island Library was joined by Lisa Ahern. Mr Hollenback is the executive director of a Economic Growth Corp and Ms Ahern is a program support specialist for this organisation as well as being the leader of two other Quad-city initiatives. (Q.C. Dollar Wise is not a direct provider of financial education but it works with organisations which provide counselling to people to help them achieve more financial independence.)

Mr Hollenback gave a brief history of the Rock Island Economic Growth Corp explaining that over the last ten years they have been providing a home buyer assistance programme which educates and assists people both before and after they buy a home. He further explained that over the 10 year period that this service has been running 400 homes have been purchased by participants in the programme and that only two of those homes have been foreclosed and unfortunately one of those involved the death of a spouse. He is justifiably proud of this success rate but added there is still a big need in the community for this programme.

Mr Hollenback also went on to explain that at the present time once a mortgage is delinquent for 90 days legal fees start to become payable and that if another 90 days were available before legal fees began, the homeowner would have more time to hopefully be able to refinance the loan at a more affordable interest rate, or a more appropriate mortgage product. Failing this it would provide them with extra time in which to place the property up for sale and hopefully sell it.

Ms Ahern made the argument that “now is the time to do something” referring to the all of the current debate and discussion of sub prime and predatory lending and the foreclosures that seem to inevitably follow.

Mr Hare’s communications director Tim Schlittner made comment about the present mortgage moratorium discussions in Congress, stating that presently no legislation is being proposed; although he did go on to comment that the moratorium could find its way into President Bush’s economic stimulus bills.

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