Minnesota's foreclosure crisis continues to profoundly affect families and neighborhoods across the state. We have had record drops in home sales, steep declines in home values, and the highest level of foreclosures since the Great Depression. Last week, Federal Reserve Chair Ben Bernanke called for increased action at the federal level to respond to the crisis. We hope to address the crisis responsively at the Minnesota legislature this year as well.
The Minnesota Subprime Foreclosure Deferment Act of 2008 and other proposals before the Legislature take strong and immediate action to prevent foreclosures by encouraging lenders and borrowers to work together to restructure subprime loans.
Most homeowners want to pay their monthly mortgage, but skyrocketing payments caused by upward adjustments to interest rates have made it impossible for them to do so. Legislation has been introduced this year that would defer these huge rate increases to allow people avoid foreclosure. Homeowners who qualify will continue making payments and are required to live in their homes during the deferment period. .
Several other bills have been offered aimed at addressing our foreclosure crisis:
- HF3428 (Gunther) Modifying right of tenant to pay utility bills
- HF3474 (Hilstrom) Relating to mortgages; redemption period; providing for notice of sale
- HF3475 (Mullery) Amending provisions relating to foreclosure
- HF3477 (Gardner) Relating to manufactured housing; providing for regulation of lending practices and default; providing notices and remedies
- HF3480 (Mullery) Relating to human rights; modifying filing of claim provision
- HF3516 (Davnie) Providing for certain data practices relating to foreclosure; requiring a report
- HF3517 (Davnie) Modifying expungement and withholding of rent under certain circumstances.
If you would like know more information about these proposals, visit the House of Representatives Bill Search website to read summaries of each bill.
Our home foreclosure crisis isn’t going away anytime soon. We need sensible solutions in order to provide breathing room to homeowners, relief to lenders and stability to financial markets that are in disarray.
As these proposals move through the legislative process, please call or e-mail with any questions.
Posted on Wednesday, March 19, 2008 by Erin Murphy,