The housing market is where the economic crisis
began and without immediate action, we are facing a multi-billion dollar impact
on our neighborhoods that is undermining the economic recovery that we desperately
need.
· Establish Foreclosure Free Zones: Counties
and municipalities should use all means to stop foreclosures that are based on
questionable document filings - such as widespread “robo-signing” and
notarization fraud. Support California Attorney General Kamala
Harris’ proposed foreclosure moratorium, and the legislative initiatives of The
Homeowners Bill of Rights.
·
Promote
a comprehensive Principal Reduction program: An
appraisal will establish a new “Interest Bearing Principal Balance”. For example, the difference between the
assessed home value and the loan balance can be divided equally, where 50% is
written off as principle forgiveness and the other 50% becomes non-interest bearing
“Deferred Principal Balance” due on sale of the property or in 30 years at loan
maturity. This is a "Win-Win" for both the mortgage holder and the lender in averting total loss of both the home and book value of the loan in extremely stressed markets.
·
Establish Land Banks and
Land Trusts: Land Banks and/or
Community Land Trusts provide a structure allowing for foreclosure, while
giving people an opportunity to stay in their homes and avoiding the impact of
abandoned houses in the surrounding neighborhood. These program move us towards an effective solution that can serve
as an advocacy tool and
as a model for the rest of the country.
So far the federal government has mostly offered
programs that bailed out the Big Banks and Wall Street. Our proposal will provide direct
assistance to Main Street. A revived and stable Main Street will provide
the needed economic boost to maintain a healthy economy with a dynamic and
responsible financial sector.
We need to stop the coming wave of new
foreclosures and keep people in their homes.
We need to act now to preserve and start restoring the middle class.
We need to act now to preserve and start restoring the middle class.
East Bay MoveOn members are being asked to bring this action plan to their local state, city and county representatives, to city council and county supervisors meetings and to the offices of public officials such as assessors, district attorneys and county sheriffs who are involved in oversight of the public trust related to unfair and fraudulently documented foreclosures.
Some links to additional resources and perspectives on the issues:
Some links to additional resources and perspectives on the issues:
