Democrats Want Lenders To Freeze Foreclosure Proceedings
Democrats are again calling for a moratorium on foreclosures. The democratic leaders in the U.S. Senate are seeking a freeze on all foreclosure activity for 90 days.
Now that the U.S. Government has control over Fannie Mae and Freddie Mac, the Senate Democrats are looking to flex a little muscle and force the two mortgage giants to stop foreclosures and help more borrowers stay in their homes. for 90-day foreclosure freeze
Senators urge Fannie Mae and Freddie Mac not to foreclose on mortgages they hold and help borrowers stay in homes.
The troubled home loan giants, seized by the government last Sunday, are being “asked” that they look at other options instead of foreclosure. Fannie and Freddie should rather work to help struggling borrowers stay in their homes, four senators say in a letter to the firms’ new chief executives and the regulator now controlling them. They’re calling for a 90-day freeze on foreclosures.
Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) together hold or guarantee some $5 trillion in outstanding mortgages — more than half the nation’s total.
The Bush administration announced last Sunday it was taking over the two companies in a bid to help reverse a prolonged housing and credit crisis.
What do you think about this? Do you think that this makes sense or do you feel it compounds problems? With Lehman brothers going under and Merrill Lynch being absorbed by Bank of America, can the government be expected to time and time again step in to help homeowners…many of whom should have known better than to take on such debt in the first place?
I believe that it is not the government’s place or responsibility to bailout homeowners and lenders. What do you think?
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