Now Is the Time to Buy Foreclosure Properties- By: Jacquelyn Marks
Stringent laws for foreclosures are already in the works as Kamala D. Harris, the attorney general of California, pushes for debt reduction on homeowners’ mortgages in hopes of reducing foreclosures. If you are hoping to find a cheap house to buy, now is the time to do so. Now would be the time because at least before the number of foreclosed properties is likely to drop because of the approval of such proposed laws.
Harris had long been active in protecting the rights of homeowners. Harris had already successfully authored a bill that provided better protection for homeowners against foreclosure and the new laws are likely to make foreclosure procedures more complex and time-consuming in the future. On one hand, such changes can help protect homeowners from unfair and deceptive practices of lenders. On the other, such changes may allow undeserving homeowners more leeway in delaying their payments at the expense of their creditors … literally.
If the bills proposed by Harris were to push through, mortgage-financing giants such as government agencies would have to put a stop to all foreclosure procedures in the United States. More information regarding Harris’ intentions had been revealed when her letter to government agencies’ regulator Edward J. DeMarco had been revealed to the public.
In the letter, Harris proposed that all foreclosure procedures be suspended until the Federal Housing Finance Agency was able to complete the anticipated review on regulations that dealt with debt reduction for homeowners who were late on their payments and owed more than the fair market value of their property. The letter also contained a request from Harris regarding more transparent and thorough review of the impact of debt reduction, as well as whether it was ultimately beneficial for both taxpayers and homeowners.
For quite some time now, DeMarco had been pressured by various factions to allow principal reduction or debt forgiveness. Such demand had emerged following a successful multibillion-dollar settlement for homeowners who had suffered from foreclosure abuse from bankers. It should be noted, however, that loans backed by either government agencies, which are responsible for over 50 percent of outstanding home loans – had not been part of the settlement and thus such loan holders were not entitled to any kind of relief.
Harris and DeMarco have opposing views on the matter and Harris had already expressed her opinion about the possibility of DeMarco resigning because of his inadequate efforts in improving the state of the house market. Harris had also sued government agencies in hopes of forcing both companies to become more transparent with their foreclosure policies. The latest reports show that approximately 80,000 loans in California from either of the two companies were already being processed for foreclosure.
The Attorney General of Massachusetts, Martha Coakley, is also of the same mind and urges DeMarco to give the green light for debt reduction. Housing analysts concur, saying that it may be the only possible way for many to avoid foreclosures.
Before that happens, however, you still have a chance of getting the foreclosed property you need and for the lowest prices possible.
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