If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money. Alexis de Tocqueville

We are getting closer and closer to the end of the republic and into a world of quasi socialism as the politicians pandering increases. The most recent example is the New York State Legislature looking to enact a 1 year moratorium on foreclosures.

That’s right, essentially they are telling the lenders that they have to suffer an additional governmental tax by having to subsidize homeowners that have essentially no interest in the home. So think about it.

• First, you sign a liars loan and fradulently get a mortgage. (Not all are liars loans but enough to make the point.)
• Second, you fail to pay the mortgage sufficiently and are in foreclosure.
• Third, the lending institution has to absorb the losses that come with processing a foreclosure.
• Fourth, the lending institution may now have to provide you a year of housing free due to the mandate by the government with no confidence that it may be extended.

New York’s one-year moratorium, if passed, would not take effect on a case-by-case basis; it would be mandatory for court-ordered foreclosures. It would impose a one-year delay from the time a lender has proved its entitlement to foreclosure to the time the court order allows the foreclosure to proceed.

The bill, which has been referred to the Judiciary Committees of the Assembly and Senate, calls for the lenders and the homeowners in foreclosure cases to work out monthly payment schedules in the interim under terms that are “equitable and just.”  via New York Times.

With the onerous property taxes that are imposed in the state of New York they would be more ethical by giving a pass on all property taxes to those in foreclosure. For many these taxes are more than their mortgage.

But that would be quite illogical, wouldn’t it.

Hattip to Moke at Altos

Related posts:

1. Bush Plan, 5 Year Rate Freeze Moratorium For Mortgage Holders
2. So You Want To Be A Blogging Superstar
3. Manhattan Appraisals Investigated By New York State Attorney General
4. Will Mortgage Rates Continue to Decline?
5. Atlanta McMansion Tear Down Moratorium