Tuesday, February 17, 2009

Michigan House Democrats Propose 90-Day Halt on Foreclosures

Since I teased the lawmakers with the last post, let's focus on some good stuff they are trying to accomplish. House Democrats are holding news conferences today in Saginaw and Lansing to highlight legislation that will call for a 90-day moratorium on foreclosures. This would stop the slide, at least for now, and give banks and borrowers a bit of time to come up with a plan to address the problem. Independent Bank jumped first yesterday with an announcement that they would halt foreclosures for the next three weeks.

The announcement follows that of Independent Bank on Monday committing to a three-week moratorium on home foreclosures while it awaits details of President Barack Obama's $50 billion foreclosure prevention program.

Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley, and Wells Fargo & Co. also agreed to suspend foreclosures.

House Democrats, trying to bring a bit of relief to struggling homeowners. You can guess what side of the debate the Senate Republicans fall on, can't you? Hint: It's not you.

"I would like to see the details. I guess it gives folks a place to live for 90 days. But what happens to the person who is footing the bill?

"It seems a little bit short on dealing with the issue -- the people who don't have jobs. They need a job to pay their mortgage."

Jansen said the measure "feels a little political" as the first significant piece of legislation launched this year by the House.

Yes, from the people who's first "significant piece" of legislation this year was to increase our budget deficit another $1 Billion with-a-capital-B dollars for business tax cuts (BTW, how is everyone enjoying those cuts to schools? Want more? The Senate will obviously be happy to oblige), now they think that saving people's homes, if even for a time, is "political".

I think the only thing left to do at this point is to get the Republicans a bigger shovel so they can dig their own "political" graves even faster.

UPDATE: The Freep has the details of the House Dem plan.