Thursday, March 3, 2011

HAMP in Trouble

Republicans are gunning for HAMP this week.  It is not clear if this is motivated by cost cutting or a desire to implement a more effective program.  No one really knows what a more effective program would look like at this point.  It looks like the real solution may just be left up to individual states to enforce their own foreclosure laws, although the feds are considering penalizing banks for poor practices in this area.

Massachusetts foreclosures have dramatically dropped off due to systemic problems with banks not following that state's foreclosure laws.  HSBC has temporarily given up the ghost in Florida as well.  New York state is giving public defenders to people getting their homes foreclosed upon due to perceived state law violations.  And here in Oregon, the federal district court has braced itself for the coming torrent of foreclosure litigation by creating a foreclosure mediation panel.

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