Mortgage & Loan: Foreclosures Rise, Rescue Efforts Continue

I hate to end the week on a downer, but looking around, I see the rising tide of foreclosures nationwide and no sign that it's cresting anytime soon:

Delaware, home of credit card companies and tax-free shopping, has posted a 178 percent increase in foreclosures between Q4 2006 and Q1 2007. That is, simply put, unbelievable.

Massachusetts governor Deval Patrick is calling his state's epidemic of foreclosures a crisis, and is pushing stronger state legislation to combat predatory lending--even as foreclosures were up 47 percent from last March.

There is some good news on the front, however:

New York City has set up a >call-in hotline to help distressed homeowners connect with nonprofit groups that will help advise them on getting out of foreclosure and find better refinancing plans. It's not much, but it's better than nothing.

ACORN has joined the call of consumer groups that want a moratorium on foreclosures:

Among the major points of the ACORN campaign is a proposal to state attorneys general to seek injunctions to stop foreclosure proceedings caused by predatory loans. The plan also calls for tougher laws against predatory lending. The group says predatory lending has lead to an epidemic of foreclosures. Last year there were 1.2 million foreclosure filings, a large increase from the 900,000 foreclosures that were filed in 2005. This year, foreclosure filings are expected to reach 1.5 million.

It's terrifying to think about statistics like that, but I'm heartened by the response to the foreclosure tsunami. Maybe this really is a watershed in our thinking about real estate, and the laws that will come from this crisis will make lending safer and more responsible for all concerned.

Posted at April 27, 2007 11:53 AM

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I hate to end the week on a downer, but looking around, I see the rising tide of foreclosures nationwide and no sign that it's cresting anytime soon: Delaware, home of credit card companies and tax-free shopping, has posted a 178 percent increase in foreclosures between Q4 2006 and Q1 2007. That is, simply put, unbelievable. Massachusetts governor Deval Patrick is calling his state's epidemic of foreclosures a crisis, and is pushing stronger state legislation to combat predatory lending--even as foreclosures were up 47 percent from last March. There is some good news on the front, however: New York City has set up a >call-in hotline to help distressed homeowners connect with nonprofit groups that will help advise them on getting out of foreclosure and find better refinancing plans. It's not much, but it's better than nothing. ACORN has joined the call of consumer groups that want a moratorium on foreclosures: Among the major points of the ACORN campaign is a proposal to state attorneys general to seek injunctions to stop foreclosure proceedings caused by predatory loans. The plan also calls for tougher laws against predatory lending. The group says predatory lending has lead to an epidemic of foreclosures. Last year there were 1.2 million foreclosure filings, a large increase from the 900,000 foreclosures that were filed in 2005. This year, foreclosure filings are expected to reach 1.5 million. It's terrifying to think about statistics like that, but I'm heartened by the response to the foreclosure tsunami. Maybe this really is a watershed in our thinking about real estate, and the laws that will come from this crisis will make lending safer and more responsible for all concerned.