Legal Commentary

Who Owns That House?

By Big Tent Democrat

HUD Secretary Shaun Donovan:

[A] national, blanket moratorium on all foreclosure sales would do far more harm than good -- hurting homeowners and home-buyers alike at a time when foreclosed homes make up 25 percent of home sales.

For instance, in Cleveland, where there are over 18,000 vacant homes, lives Millie Davis who recently earned her Master's Degree in Urban Planning from Cleveland State University and just bought her first home - one that had fallen into foreclosure and sat abandoned for years. Had a blanket moratorium been in place, that sale would have fallen through [. . .] These homeowners are at risk, too - and the best hope they have is for the "Foreclosed" signs in front of the vacant, abandoned properties on their block to come down, so that the value of their homes can start rising again.

(Emphasis supplied.) I am insistent on following the rule of law and providing homeowners due process, not a moratorium on foreclosures. I am for ending the moratorium on the rule of law that persists in this country regarding foreclosures. But beyond that, Donovan's statement makes no sense. The current climate of clouds over titles to homes is not a result of a potential national moratorium on foreclosures. Quite the opposite. It was due to the moratorium, blithely accepted by the Obama Administration, on due process and the rule of law. The Obama Administration has simply been incompetent regarding the mortgage crisis (from HAMP on down.) There is a crisis of confidence in the country about this issue, and a cause of that is the incompetence of the Obama Administration.

Speaking for me only

Full post as published by TalkLeft on October 18, 2010 (boomark / email).