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California Ballot Proposal Would Ban Home Foreclosures
Topic Started: Sep 6 2011, 08:40 PM (284 Views)
LTC8K6
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Just when you thought they couldn't go any further under...

http://businesslawdaily.net/2011/08/17/california-ballot-proposal-would-ban-home-foreclosures/

Quote:
 
SACRAMENTO, Calif. — California could ban lender-initiated home foreclosures, under a proposed amendment to the state’s constitution that would make home ownership a fundamental right.

Initiative 11-0014 could appear on the ballot in November 2012, if supporters submit more than 800,000 voter signatures necessary to qualify the measure.

The Foreclosure Modification Act, a proposed citizen’s initiative, would ban mortgagees from foreclosing on owner-occupied dwellings in the Golden State. It would further require banks and other lenders to help mortgage borrowers struggling amid financial hardship or illness.

Additionally, lenders would be required to reduce loan principal amounts to reflect a drop in local property values of at least 10 percent. Payments would be adjusted without a new credit review, the proposal states.

Lending institutions would have 45 days — from a borrower’s requests — to refinance a loan maintained for at least three years, the proposal seeks to mandate.

If enacted, the initiative would state a finding that “foreclosure has become a method of increasing a lending institution, loan servicer, mortgagee, trustee and beneficiary’s bottom line and profits by turning borrowers out of their homes.”

David A. Benson of Sacramento brought the ballot question on behalf of himself and other California homeowners. On June 7, he requested a ballot title and summary from the attorney general’s office. The documents are required for the secretary of state to set filing deadlines for the initiative.

‘Fundamental Right’

If approved by two-thirds of ballots, Article I of the California Constitution would be amended, in part, to add Section 31, declaring: “It is a fundamental right for every Californian to purchase and own a home and real property. As such no township, city, county, municipality, corporate entity, the Legislature or agents thereof shall infringe on this given right of the State of California to its citizens.”

California Secretary of State Debra Bowen (D) on July 27 approved Initiative 11-0014 for signature collection. A copy of the materials is here.

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Baldo
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Whoopee! No more mortgage payments!

Of course no one would lend any money to buy a home so you couldn't sell it.

Never-mind
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LTC8K6
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Au contraire...

I'll bet the law requires banks to comply to do business in the state...
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DukieInKansas

I'm amazed that people think that something like this would is in anyway reasonable. How in the world is this even fair to lenders?
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kbp

LTC8K6
Sep 6 2011, 08:46 PM
Au contraire...

I'll bet the law requires banks to comply to do business in the state...
If that's "business in the state", they'll leave.
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kbp

from LTS's link
 
...It would further require banks and other lenders to help mortgage borrowers struggling amid financial hardship or illness.

Additionally, lenders would be required to reduce loan principal amounts to reflect a drop in local property values of at least 10 percent.



A broad interpretation might have the lenders feeding and paying the borrowers!
Edited by kbp, Sep 6 2011, 09:10 PM.
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LTC8K6
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DukieInKansas
Sep 6 2011, 09:04 PM
I'm amazed that people think that something like this would is in anyway reasonable. How in the world is this even fair to lenders?
They believe they are entitled...
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LTC8K6
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kbp
Sep 6 2011, 09:05 PM
LTC8K6
Sep 6 2011, 08:46 PM
Au contraire...

I'll bet the law requires banks to comply to do business in the state...
If that's "business in the state", they'll leave.
I bet they don't. I bet they pass the costs along to the hard working folks who are making their home and car payments on time...I bet they work a fee or surcharge in there to cover...
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comelately

kbp
Sep 6 2011, 09:10 PM
from LTS's link
 
...It would further require banks and other lenders to help mortgage borrowers struggling amid financial hardship or illness.

Additionally, lenders would be required to reduce loan principal amounts to reflect a drop in local property values of at least 10 percent.



A broad interpretation might have the lenders feeding and paying the borrowers!
Never mind the banks! These people vote in presidential (and other) elections... Inmates are running the asylum! :bump:
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kbp

LTC8K6
Sep 6 2011, 09:18 PM
kbp
Sep 6 2011, 09:05 PM
LTC8K6
Sep 6 2011, 08:46 PM
Au contraire...

I'll bet the law requires banks to comply to do business in the state...
If that's "business in the state", they'll leave.
I bet they don't. I bet they pass the costs along to the hard working folks who are making their home and car payments on time...I bet they work a fee or surcharge in there to cover...

It would take a BIG team of actuaries months to figure out what the rates would have to be on 30 year mortgages open to both a 10% hit on the principal and reduced payments. They'd be working with a HUGE unknown; what the governing body of that state will do to their economy!

I bet the rates would have to be higher than Greek bonds!
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Baldo
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IMHO Obama will announce a major re-financing plan for the USA. Double down so to speaK.

COMRADES WE ARE AT A TURNING POINT.
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kbp

Baldo
Sep 6 2011, 11:18 PM
IMHO Obama will announce a major re-financing plan for the USA. Double down so to speaK.

COMRADES WE ARE AT A TURNING POINT.
You may be onto something.

Nobody disputes that the housing market has us in a hole.

Fannie & Freddie are not to be touched, for good or bad, just left hangin’.

The Fed is going after banks for Fannie, and then will bail out the banks, which makes me suspicious of the no-cost money Ben can indirectly bail Fannie out with.

The FHFA just came out with a Request For Information on selling off the foreclosed property somehow, even hinting at partnering with investments …which I participated in (property in big packages, like 50 to 100+ groups of homes …with sale restrictions mentioned also (=rent only in my mind)

Big packages would prevent most devaluation in the market, for there would not be any “sale price” for single homes to hit the appraisals.

There has been a lot of activity in the housing/mortgage end that may be a plan …if you could connect all the pieces.

I know that Fannie, Freddie, FHFA and HUD won’t tell me any more than they are just looking into asset sale options…

The long-term rates are locked by Ben for 2+/- years.

I'm sure something has to be done, something looks like things are happening, I'm just not sure what they're doing!
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Baldo
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Desperate Homeowners will do almost anything

I am sure something like this will happen. How big I don't know.

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