Wednesday, March 21, 2012

FHFA: Local Laws to Blame for Slow Foreclosures

Federal Housing Finance Agency general counsel Alfred Pollard warned thatstate and local laws meant to aid home owners at risk of foreclosure actually delay the process, hurting the housing finance system and neighborhoods.
He cited such laws as in Washington, D.C., where mediation can prolong the foreclosure process by as many as 132 days, and in Worcester, Mass., where a $5,000 bond must be posted at the time of foreclosure to ensure the home will be maintained.
Pollard said states and localities must "review the balance between home owner protections and the movement to efficient and professionally undertaken foreclosures."
Source: "FHFA Blames Local Laws for Slow Foreclosure Process," American Banker (March 20, 2012)

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