Obama Weighs Foreclosure Ban

Proposal would require HAMP to review all delinquent mortgage loans
By Rob Quinn,  Newser Staff
Posted Feb 26, 2010 6:40 AM CST
A sign advertises foreclosed property for sale in Stockton, Calif.    (AP Photo/Marcio Jose Sanchez, file)
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(Newser) – The Obama administration is considering kicking up the fight against foreclosures by banning any that haven't been reviewed by its Home Affordable Modification program. The move would prevent lenders from initiating foreclosure unless HAMP had screened the loan and found it unsalvageable. it would also require them to halt existing foreclosure proceedings when homeowners enter a trial repayment plan, Bloomberg reports.

The proposal would require that mortgage holders 60 days or more delinquent on their loan be contacted and offered access to the modification program. A Treasury spokeswoman confirmed that a foreclosure ban is being considered but said that the proposal has not been approved yet. Some 4.5 million foreclosure filings are expected this year, according to data company RealTrac, and Republicans have branded the HAMP program a failure.

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