Michigan Senators Propose Three-Bill Plan

ForeclosuresMass President and co-founder, Jeremy Shapiro NewYork's Federal Reserve chairman Ben Bernanke is pushing for more efforts from the federal government and mortgage lenders to curb home foreclosures, which continue to rise. Bernanke's recommendations are in line with a bill authored by House Financial Services Committee chairman Barney Frank that would have the FHA back up $300 billion mortgages after lenders agree to cut the principal. Around the U.S. the housing market is sluggish, real estate auctions of bank-owned foreclosures make the dream of homeownership even more affordable for buyers. Many foreclosed homes usually sell at auction below market value because they have been sitting on the market value because they have been sitting on the market for months and the banks are eager to sell these properties. Three state senators in Michigan are trying to help with a new three-bill package that would put a moratorium on mortgage and tax foreclosures. The legislation would allow property owners to seek a two-year stay on mortgage foreclosures from the court, but homeowners could be ordered to pay reduced mortgage payments during that time.

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