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New Foreclosure Legislation May Not Be Enough

Congressional aid to homeowners may need overhaul, not 'patches'

By Matt Cantor, Newser Staff

Posted May 22, 2009 12:45 PM CDT

(Newser) – Congress’ Hope for Homeowners plan was aimed at fighting the foreclosure epidemic, and it’s been a success for exactly one person. Now, lawmakers have put “patches” on the legislation—but some worry the fixes aren’t going to do the job, ProPublica reports. Instead, it needs “some major, wholesale changes, since no one is using it at all,” says an analyst.

Before, he notes, Congress “put in so many restrictions it was unusable.” Homeowners faced limited eligibility and high costs; lenders were required to voluntarily cut mortgage balances and had to grapple with a complicated process. New rules may provide more homeowner relief, but leave some issues unresolved, like the nuisance of background checks. There may be “more iterations” to come, says a banker.

In this Feb. 17, 2009, file photo, a foreclosure sign sits outside a home for sale in Phoenix. (AP Photo)

A home is advertised for sale at a foreclosure auction in Pasadena, Calif., in this 2007 file photo. (AP Photo)

A for-sale sign hangs in front of a Homestead, Fla. home, March 24, 2009. (AP Photo)

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New Foreclosure Legislation May Not Be Enough

Congressional aid to homeowners may need overhaul, not 'patches'

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Congress • housing market • mortgage • homeowners • mortgage lender • Hope for Homeowners • foreclosures

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More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

Foreclosures Shoot Up 7%

RealtyTrac calls it the end of the robosigning 'rain delay'

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New Foreclosure Legislation May Not Be Enough

Congressional aid to homeowners may need overhaul, not 'patches'

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OTHER STORIES ON OUR RADAR

Congress • housing market • mortgage • homeowners • mortgage lender • Hope for Homeowners • foreclosures

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

$26B Mortgage Settlement a 'Modest' Help: Experts

Many struggling homeowners not covered in deal

Banks Ink $26B Deal to Help 2M Homeowners

49 states sign on to deal with nation's top 5 banks

Freddie Mac Bet Billions Against Homeowners

Has financial stake in limiting refinancing for struggling people

Ex-Banker: Yeah, Collapse Was Our Fault

So why haven't homeowners been bailed out?

Foreclosures Shoot Up 7%

RealtyTrac calls it the end of the robosigning 'rain delay'

About Us

Site

Newser By Users

Community

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Tools

More News

What is Newser?