Task Forces Begins To Take Foreclosures To Task

November 16th, 2007

The Lake County Foreclosure Prevention Task Force comprising of county officials, bankers and advocates is geared up to address the foreclosure issue. The first meeting was held in Painesville. The target is to work out a plan of action with future goals to help foreclosure victims. This task force will also link the efforts of private and public bodies engaged in assistance. County Commissioner Try and Kidd the Executive Director of Fair Housing Resource Centre of Painesville led the meeting.

The focus was on the fact that many were as yet unaware of the seriousness of the foreclosure problem.

Other counties have already started to take similar steps and being encouraged to do so. The issue is not just about predatory lending but how it has hit many who have lost jobs or bought more than they could digest. Many were enticed into low rate mortgages that soon began to increase within two years or so. Some of the loans clearly should not have been made because the loaned amount was far in excess of the value of the property. Many of these house loans were taken to buy other items over and above the house. But debts are catching up with this sort of irresponsible borrowing coupled with sudden bad luck like ill health, job loss or divorce.

The task force intends to financial educate the people to avoid risky loans and then to show what to do if foreclosure closes in on them. The task force also expects the lending parties to work in tandem with them because the foreclosure is affecting all. There are millions going into foreclosure leading to a socio-economic problem. With repayments coming to a halt there is a cash crunch. The fall of property prices does not make it profitable to take on units. There are no new loans to be advanced and therefore no buyers. Abandoned houses are leading to rise in crime rate and dispossessed angry people bode ill for all those in the corridors of government. The first thing is not to delay and worsen matters. The people will have to be told that they have a genuine place to turn to for help. There is a hot line ready. US Department of Housing and Urban Development funds the Fair House Resource Center. Many programmes are being launched to find out avenues of escape.

Via