Update: Cicilline airs 2 plans to ease foreclosures' pain
1:08 PM Mon, Feb 02, 2009 | Permalink
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Source: Providence Department of Planning and Development The number of foreclosure sales filed with the Providence Recorder of Deeds Office, by month. The total number of foreclosure sales in 2008 was 1,577, up 120 percent from 718 in 2007, according to the Planning and Development Office. PROVIDENCE -- Mayor David N. Cicilline announced today two proposed ordinances to deal with the growing number of foreclosures in the city. One ordinance would protect tenants from eviction when their apartments are subject to foreclosure proceedings. The second ordinance would require financial institutions and property owners to engage in mediation with Rhode Island Housing before moving ahead with a foreclosure. "The proposed ordinances address the need for bold action to protect families, many of whom find themselves faced with sudden eviction, with no recourse," Cicilline said at a press conference outside of the William D'Abate Elementary School in Olneyville, one of the hardest hit neighborhoods in the capital city for foreclosures. Source:Moody's Economy.com A loan is considered in default at the time it is written off by the lender. Default is technically not a foreclosure (an auction sale), but can be considered as a first step in foreclosure. The proposed laws are similar to what the city of Philadelphia implemented in the spring of last year. Already, that program has prevented or delayed foreclosure in nearly 80 percent of the 552 cases, according to Cicilline. The national foreclosure crisis has had a devastating impact on Providence families, forcing some of them into homelessness, according to Cicilline's office. The proposed ordinances, sponsored by Councilman Kevin Jackson, are designed to help mitigate the impact of foreclosures, which have doubled in Providence in the past two years. Last year, Providence had 1,577 foreclosures, more than double the total from 2007.
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Can someone please educate the boy mayor on contract law. A mortgage is a contract. You cannot add a law that changes the terms of these contracts. While I agree that renters being evicted from foreclosed homes is awful, it is not the banks that are the enemy, it is the scum landlords. And the second ordinance, mediation required. I have a better idea, put in an ordinance that says you will pay your mortgage. Nobody has ever been foreclosed on when they paid their bills.
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Wow. That's an awfully one sided and narrow view of the situation, JD. I see we're full of bitterness. In your opinion, "screw everyone as long as I feel vindicated." Can we please have a real discussion on the terrible situation this country finds itself in and what real solutions we can take (such as the boy mayor has done) instead?
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Sam
I am not bitter, I am tired of the boy mayor trying to play hero while introducing ordinances that are un-enforceable and the mediation requirement is un-Constitutional. "Councilman John Lombardi, an attorney, was doubtful that the city could enforce the “foreclosure mediation” ordinance." The boy mayor justifies these ordinances saying they are similar to what was enacted in Philly, when the law in Philly deals with tax sales, not foreclosures.
I do feel bad for people who have hit dire consequences which have resulted in foreclosure. However, I do not feel bad for people who have tripled their mortgage payments via home equity loans or bought houses with nothing down and a interest only payments which even then they could barely afford. So, my opinion is not "screw everyone as long as I feel vindicated" it is screw everyone who refuses to take personal responsibility for their situation and expects everyone to support them.
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by mortgagors I meant mortgagees by the way.
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