subject: Foreclosures – Inching its way into the Homeowners Territory [print this page] Foreclosures Inching its way into the Homeowners Territory
Foreclosure properties have masked itself as the next crisis in line since the Great Depression, which was also an alarming recession that, for a while, had become every American's nightmare. Foreclosure homes have now begun to disrupt the peaceful lives of most homeowners. It has left a startling negative impact in the housing market, thereby adversely affecting the nation's economy.
Owing to this crisis, the Federal Reserve has proposed an amendment of a particular provision stated in the Lending Act'. This proposal has created a wave of outrage among attorneys, especially those who are part of the state and local legal services groups, consumer and civil rights organization, and other official authorities as well. Most officials have reckoned this decision by the Federal Reserve pertaining to foreclosure as a drastic and unjust decision.
The issue that has angered most officials is the Federal Reserve's attempt to revamp the current situation on foreclosure by proposing an elimination of a particular clause stated as the right of rescission'. This clause pertaining to foreclosure, which has been stated in the Lending Act, actually entitles a homeowner to cancel or call off illegal loans for up to a period of three years from its onset.
This proposal seems disapproving to most officials and is now facing constant opposition by most authorities who are now requesting a withdrawal of the proposal on foreclosure, at the earliest. According to them, this proposal on foreclosure, which has been attempted by the Federal Reserve with the intention to improve the critical situation, is making it even worse for homeowners than before. It has been voiced by a group of attorneys that the right of rescission' is the one and only clause that enables homeowners to cease foreclosure and refrain from unfair and deceptive loan terms.
Apart from the opposition, there have also been some requests from the concerning official authorities that all future proposals and amendments should be administered and directed only by the Consumer Financial Protection Bureau, which, in turn, shall begin to function from next year onwards. Foreclosures, which have been on the upsurge for a while now, shall be immobilized for a brief period during the holiday season beginning from Christmas to New Year that is from December 20 to January 3 of next year. This decision is, in fact, based on a clause that falls into the foreclosure holiday policy' that has been consistently followed by the Banks in America.
