"New Jersey Gov. Jon S. Corzine urged a “timeout” on foreclosures, saying keeping people in their homes is an important step in efforts to correct a “deeply troubled” market.
According to the Star-Ledger, "Corzine's remarks followed news from banking regulators, stating that more than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again."A three- to six-month freeze on foreclosures is needed as the “economic dominoes are picking up speed,” Corzine said today at a housing conference hosted by the Treasury Department’s Office of Thrift Supervision in Washington. Mortgage foreclosures rose to a record high in the third quarter as one in 10 U.S. homeowners fell behind on mortgage payments or were in foreclosure, the Mortgage Bankers Association reported last week."
In what direction will borrower assistance travel? Corzine would like to see the resurrection of an entity such as the Home Owners' Loan Corp. that was created in 1933 to help borrowers refinance troubled home loans during the Great Depression.
Even the FDIC admits a high rate of default after terms of modification are agreed upon. The solution will not be simple and it will be painful for lenders, especially if they are blocked from foreclosing.
Vested Title Inc., 648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306.
Tel 201-656-9220. Fax 201-656-4506. E-mail vti@vested.com
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