May 2008 Sees Foreclosures Surge 48%
The month of May has changed the way I think about politics. I used to be upset that nothing was being done to help the people living in Southwest Florida, now I am just ticked off. Foreclosure filings were up 48% over May of last year. This statistic proves several things: First nothing is being done on the Federal level to help the people of Southwest Florida keep their homes. Second, nothing is being done on the State level to help residents keep their homes. Third, where are the results that the mortgage companies promised when they argued not to change the bankruptcy laws. Where is Hope Now, President Bush's coalition of mortgage companies dedicated to helping people save their homes.
A recent report predicted that over the next five years, 6.5 million loans will fall into foreclosure, or approximately 8 percent of U.S. households. Even if this statistic is wrong by a million or so, that should be enough to catapult our leaders into action; however, we are hearing nothing from Washington or Tallahassee. Why? Well the President has vowed to veto any bills calling for Reform of the Bankruptcy Code to allow debtors to cram-down the mortgages on their primary residences. It is shocking to me, that debtors can cram-down the mortgages on their second homes, but not on their primary residences. Nothing is being done in Tallahassee to help Florida residents save their homes. Oh wait, I am wrong about that, Florida recently passed a law which stops mortgage rescue scams and also places additional legal hurdles in the way of attorneys trying to help people save their homes.
I will speak more about that new law when I calm down a little. I get so mad each and every time I read the law. In general, I know the purpose of the law was to protect consumers from foreclosure rescue scams. But, the law goes a little further than that, like performing surgery on a skinned knee. I may be exaggerating, but then again, maybe not.
This Post is submitted by Carmen Dellutri, Esq. of The Dellutri Law Group, P.A. Mr. Dellutri is also a Board Certified Consumer Bankruptcy Attorney. He is also one of the founding members of The Bankruptcy Law Network, the Mortgage Law Network, Debt Law Network and Credit Law Network.
