November 7: Time for a Moratorium on Home Foreclosures

“We mustnot allow our local communities to be shut out while big banks—who just happento be getting billions of dollars from the taxpayers—sell these properties inour community,” said Kaptur, a fierce opponent of the Wall Street bailout bill. Kaptur said she objected to “outsideinvestors” bidding on properties while communities are still waiting on fundsto perform mortgage workouts or buy housing stock for rehabilitation ordemolition.

“I havebeen concerned all along that the foreclosure prevention bill that became lawin August was inadequate to address the magnitude of the problem in Toledo, Sanduskyand other communities,” Kaptur said. “Weneed time for our local communities to prepare their plans and get theirallocations from the federal government. Auctions such as these, however, take away any chance for ourcommunities to deal with this situation in a positive manner, including buyingat least some of the affected properties.”

She notedthat foreclosures in LucasCounty, the largestcounty in the Ninth Congressional District, probably exceeded last year’s totalsometime this year. Total foreclosuresin Lucas County last year were 3,486;foreclosures through October of this year were 3,427 and were expected to top4,000 for the year.

“It isimportant for the American people to know who is benefiting off our people’spain. Instead of working with homeownersto renegotiate their mortgages, these very same firms who have received bailoutmonies are now auctioning off those homes—quite possibly to outside investors—evenbefore local governments are given the tools they need.”

Kaptursaid local citizens should be aware that “there are those in our society whoare making untold billions off the pain of our people. They should be brought to justice, no matterhow long it takes.”

Kaptursaid the city of Toledois projected to receive approximately $12.2 million from the federalNeighborhood Stabilization Program. Thestate will receive an additional $117 million, some of which could end up in Toledo. She said state and local governments will beable to use their grants to acquire land and property, demolish or rehabilitateabandoned properties, and/or offer down payment and closing costassistance. They can also create land banksto assemble, manage or dispose of vacant land.

“Unless we delay these premature auctions, thosemegabanks who did this damage to America's families will benefiteven more,” Kaptur said. “Not only did they make billions of dollars before thehousing bubble burst, now they will acquire property at rock bottom prices throughsheriff's sales, then resell units, and bydumping new mortgages to FHA insurance, they minimize their risk whilepositioning themselves to benefit handsomely on the upside as property valuesincrease over time. In other words, the taxpayers eat their risk, they are mademore than whole, while millions of our citizens go bankrupt and areforeclosed."

Kaptur urged homeowners to seek foreclosurecounseling by calling 211.