March 9, 2009
Are Antiquated State Laws Fueling the Foreclosure Crisis?
A new report from the National Consumer Law Center entitled ""Foreclosing A Dream: State Laws Deprive Homeowners of Basic Protections," identifies some of the most antiquated state law provisions, which are "tilted against homeowners" and acting as a little-understood factor that is helping to accelerate the U.S. home foreclosure crisis.
According to the NCLC report, examples of state laws tilted against homeowners include the following:
- "Fast track" foreclosure.
- No direct notification of foreclosure proceedings.
- No effort required to find solutions short of foreclosure.
- Eleventh-hour payments can be ignored.
- Heaping on of penalties that can send homeowners over the edge.
- More penalties even after home is lost and sold at auction.
NCLC also provides a comprehensive summary of state foreclosure laws. [RJ]
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This makes me so angry. Homeowners have virtually NO protection.
What amazes me in particular is that no effort is made to prevent the foreclosure. I don't understand, if it costs the banks money, why aren't they making more of an effort to prevent it from happening?
Posted by: Produce The Note | Nov 26, 2009 9:10:57 AM