Government interference worsening foreclosure problems

December 17, 2008
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The government’s effort to delay foreclosure proceedings is only making the problem worse than it already is.  This is usually what happens when government interferes with business matters because businesses tend to add such intervention in their costs.

Too much restrictions is hurting the homeowners even more because lenders stay away from states with very stringent laws limiting the lending options for borrowers.

This was proven true when Massachusetts governor Deval Patrick intervened and stopped foreclosure proceedings for 90 days only to get skyrocketing foreclosure figures of up to 465% in the end.  Laws now require lenders to delay the issuance of a notice of default until they have given the borrower…