Marcy Kaptur (D-OH) has submitted a resolution to the House Financial Services Committee calling for a temporary foreclosure moratorium due to the “precarious and unstable state” of the housing market[1]. She cited the high volume of underwater homes in the country as reason for the moratorium, saying that “many economists today believe that to avoid relapsing into another devastating financial crisis, a key component is the nation’s housing markets.” Kaptur is hoping that President Obama will declare a “national foreclosure emergency” and, in addition, adopt a national foreclosure moratorium.
Ohio is one the country’s designated “hardest hit” states, which means that it is the recipient of monies from the federal Hardest Hit Fund[2]. Despite this aid, Kaptur fears that rising unemployment in the state will trigger a second wave of foreclosures. She argues that a foreclosure freeze would give both lenders and homeowners time to “work out a solution on millions of home mortgages…forecast to be foreclosed in the next five years.”
Do you think a foreclosure moratorium is a good idea?
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[1] http://www.dsnews.com/articles/ohio-representative-calls-for-temporary-foreclosure-moratorium-2011-07-12
[2] http://www.housingpredictor.com/2011/foreclosure-freeze.html
