October 7, 2008

Center for Responsible Lending Calls on Congress to Help Families Facing Foreclosure

Even though the U.S bailout plan will help the economy (which will take some time), the main problem with the economy was still caused by foreclosures and the housing crisis. If this problem is still not addressed, then the economy will still not recover quickly. The center for responsible lending is asking congress to do something immediately about the foreclosure situation.

“Any plan that fails to stop foreclosures will ultimately fail to fix the crisis,” said Michael Calhoun, president of CRL. “Wall Street firms and banks caused a massive foreclosure crisis in this country, and this bailout provides no meaningful way to end it. It doesn’t stop the epidemic of foreclosures that will continue to drag down property values for everyone.”

About 7 million foreclosures are expected to occur in the next few years to come involving some 40 million families. Existing measures are not working.

The foreclosure crisis could have been prevented. There were plans, ones that gave home owners the same foreclosure judicial rights as business owners in the foreclosure process. They were plans that didn’t incur heavy tax burdens and duties on home owners. Over half a million home owners would have been saved from foreclosure hearings if simple precautionary steps had been taken.

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