Georgia Bills To Tackle Rising Foreclosures

March 6th, 2008

The State Senate Committee approved three new legal proposals aimed at restraining the high rise of foreclosure numbers. Legislators however continue to sort out differences in details. The approval by the committee is a signal that the lawmakers of Georgia are serious in their basic intentions as regards foreclosures. Senate Bill 531 generated the maximum amount of discussion before getting approved. The bill stated that the name of the owner of the house in foreclosure must be mentioned in the public records.

So far there have been multiple mortgages on a single unit. Finally it is sold in bundles to countless investors. The net result is that the lawyers representing the house owners trying to save them from foreclosures cannot locate the name of the original debt holder. Howard Rothbloom an attorney dealing with bankruptcies opines that ‘Lenders shouldn’t be allowed to lurk in the shadows of a foreclosure case.’ Speaking for the lenders attorney John Aldridge argues that the identity problem has been solved by the lenders authorizing third party loan servicing agencies to work directly with the borrowers and come to amicable settlements, if required.

Approval was also given to Bill 519 by senators who extend foreclosure notice clause from 15 to 30 days.

An altered version of Senate Bill 465 was also voted for. It provided for the extension of the foreclosure notice time span for the ARM’s to 90 days.

The bills must also get the green signal from Senate Rules Committee to be ready for the final full vote on the floor of the Senate.

Foreclosures have been rolling across the country at phenomenal speed with no signs of abatement despite various palliatives measures. All the steps taken so far at federal, state, local levels in tandem with communities have not been able to go to the root of the problem. The problem seems to have been postponed rather than solved as if awaiting the outcome of the Presidential elections.

Foreclosures are affections all sections of the society and the economy. Lenders have not been spared. They are facing an acute cash crunch desperately weighed down by innumerable houses that are not bringing in money but rather taking out funds. The government taxes are down in tune with the falling real estate market. The neighbourhoods are badly affected with abandoned houses posing problems related to health and security. Politicians are a worried lot as ripples cross the oceans.