Foreclosure Advocates March on Washington

Posted by: Chris Palmeri on October 23, 2008

march.jpg

In the 1960s activists marched for civil rights and to protest the Vietnam War. Now its the foreclosure crisis.

Community activist group Pico National Network is marshalling faith-based organizations and housing advocates for what it’s calling a national town hall meeting in Antioch, Calif. on Monday Oct. 27.

There they’ll meet with representatives of Wells Fargo Bank, Bank of America, the FDIC, and state and local officials to press for an end to foreclosures. On Nov. 17 the group will descend on Washington to meet with legislators and officials there.

Citing stats that say some 2.2 million people could lose their homes in the coming year as their toxic mortage rates jump, Pico’s leaders want a national policiy to renegotiate mortgage loans rather than foreclose. The program would resemble what the FDIC has been doing with IndyMac.

Reader Comments

Adam Smith's Bastard Heir

October 23, 2008 11:52 AM

Foreclosures are "mean", "they will drive down property values", blah, blah, blah. No one threw money at me when I had to come out of pocket to payoff my mortgage when I sold my first home in 1994. Lesson learned.

Unless there was fraud in the inducement, there is no reason for the government to get involved in bailing out persons who entered into risky mortgages in order to purchase a home that they could not afford. My wife and I have always lived within our means, whatever they were at the time.

It is absolutely galling that the fiscally prudent must pay for the poor decisions of the gimee-gimees. A college professor once defined life as "a series of instantaneous benefit-cost analyses". Similarly, life is the result of risk-reward tradeoffs.

Adam Smith's Bastard Heir

October 23, 2008 12:52 PM

Where are the private mortgage insurers in this mess?

Lynn Lashbrook

October 23, 2008 2:16 PM

This global economic storm may never become a Depression but I believe this era will be known as "The Great Recession!" for decades.

DreamT

October 23, 2008 4:10 PM

If they want to "press for an end to foreclosures", they are not advocating foreclosures - to the contrary. Very misleading title.

c

October 23, 2008 4:22 PM

You people who want us responsible people to bail out the irresponsible make me so darn angry.. Why not just replace "distressed homeowner" with "distressed credit card usurious rates" or "distressed 401k plans".. Where the heck does it end!!! What makes the homeowners so special? I lost my job .. so where is my help with my interest payments on my credit cards?

Minky

October 29, 2008 11:15 AM

Wouldn't a Foreclosure Advocate be someone in favor of foreclosure?

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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