Posted by Elliot S. Schlissel, Esq.
The foreclosure crisis in the United States is now reaching the highest office of the land. President Obama is being backed into a corner, forced to protect the banking industry from allegations of fraud, misrepresentations, improper lending practices, defective foreclosure lawsuits and predatory lending issues.
Senior democrats have been calling for a moratorium on foreclosures in the United States. They seek to punish the banking industry for their improper actions.
Recently, Shaun Donovan, the Secretary of Housing and Urban Development, made the following statement: “irresponsible banks need to be held accountable, but if we have not found a problem with a bank’s process, we do not believe that we should impose a moratorium that can hurt the market and hurt the individual buyers.”
The Obama Administration has taken the position that if we hurt or damage the financial industry, in the long run, it is the public who feels the pain when the economy continues to erode.
The banking industry is arguing against the moratorium on foreclosures. They claim that the moratorium would have a long term negative effect on the economy in the United States. The Obama administration shares this concern. Recently, David Axelrod, a senior White House advisor, stated “There are in fact valid foreclosures that probably should go forward.” The Obama administration’s position is that people who don’t pay their mortgages should be held accountable in foreclosure proceedings. In the alternative, homeowner advocates claim there has been a pattern of abuse in the banking industry regarding foreclosures. The Obama administration wants to play this issue both ways. They are expressing concern for homeowners’ whose homes are in foreclosure, but they do not want to take any steps that may have a negative affect on the banking industry because they feel it will have long term negative economic impact in the United States.
Protecting Homeowners From Foreclosure
Our law firm assists homeowners in foreclosure defense. We handle mortgage modifications. We deal with defective foreclosure lawsuits and predatory lending issues. In appropriate situations, we utilize Chapter 7 and Chapter 13 bankruptcies to assist our clients in stopping foreclosure proceedings from moving forward. Call us for a free consultation at 1-800-344-6431, 516-561-6645 or 718-350-2802.
