San Diego to become a Foreclosure Sanctuary?
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| Also listed in: Courage Campaign Staff |
In a surprise move, President Bush withdrew his veto threat of a Housing bill intended to help homeowners on the brink of losing their homes to foreclosure. Of course, banks must decide to participate and homeowners must share any future equity. But San Diego City Attorney, Michael Aguirre has a simpler idea to help homeowners in default - force lenders to restructure terms of bad loans.
According to Reuters, Aguirre filed a lawsuit against Bank of America and its recently acquired Countrywide unit to stop the mortgage lenders from foreclosing on homes in the city and forcing them to renegotiate with borrowers.
Moreover, Aguirre is expected to expand his efforts to protect homeowners by filing similar lawsuits against Washington Mutual, Wells Fargo and financially troubled Wachovia.
"We would like to see San Diego become a foreclosure sanctuary," Aguirre said.
The federal housing bill - approved by the House, supported by the big banks and the president include: $300 billion to provide affordable mortgages; $4 billion in grants to help local communities fix up blighted foreclosed properties; a bailout of Freddie and Fannie; and a $7,500 tax credit for first-time homebuyers.
Under this plan, taxpayers will be on the hook for the ill effects of an unregulated free market mortgage industry. Of course, the banks must first agree to take a short-term loss with the security of a share of any future equity in the property.
Oh, and the tax credit for first-timers must be repaid interest free within 15 years. I call that a low-interest loan. There may not be interest but inflation will certainly accrue over 15 years.
Agiurre provides a clear progressive solution to the housing crisis. Banks get to avoid a costly foreclosure process, homeowners get to stay in their homes and the community of San Diego maintains neighborhood stability. That's a win-win-win.
Speaking of winning, Agiurre needs to win re-election come November so that he may continue this type of important work on behalf of the people.
According to Reuters, Aguirre filed a lawsuit against Bank of America and its recently acquired Countrywide unit to stop the mortgage lenders from foreclosing on homes in the city and forcing them to renegotiate with borrowers.
Moreover, Aguirre is expected to expand his efforts to protect homeowners by filing similar lawsuits against Washington Mutual, Wells Fargo and financially troubled Wachovia.
"We would like to see San Diego become a foreclosure sanctuary," Aguirre said.
The federal housing bill - approved by the House, supported by the big banks and the president include: $300 billion to provide affordable mortgages; $4 billion in grants to help local communities fix up blighted foreclosed properties; a bailout of Freddie and Fannie; and a $7,500 tax credit for first-time homebuyers.
Under this plan, taxpayers will be on the hook for the ill effects of an unregulated free market mortgage industry. Of course, the banks must first agree to take a short-term loss with the security of a share of any future equity in the property.
Oh, and the tax credit for first-timers must be repaid interest free within 15 years. I call that a low-interest loan. There may not be interest but inflation will certainly accrue over 15 years.
Agiurre provides a clear progressive solution to the housing crisis. Banks get to avoid a costly foreclosure process, homeowners get to stay in their homes and the community of San Diego maintains neighborhood stability. That's a win-win-win.
Speaking of winning, Agiurre needs to win re-election come November so that he may continue this type of important work on behalf of the people.