House Bill Would Halt Foreclosures On Gov't-Backed Loans

Law360, New York (April 27, 2012, 5:39 PM EDT) -- House lawmakers introduced a bill on Thursday that would force banks holding federally backed mortgages to negotiate loan modifications with homeowners, impose a three-year delay on foreclosures and empower federal courts to adjust mortgage balances.

The Save Our Neighborhoods Act of 2012, sponsored by Rep. Hansen Clarke, D-Mich., would create a new legal process for struggling homeowners trying to stave off foreclosure. The threat of foreclosure suspension will "encourage banks to agree to modify mortgages and make payments more affordable" according to Clarke.

Clarke said Friday...
To view the full article, register now.