Legislators in Texas Are Trying to Slow Down Foreclosures

May 25th, 2009 | Tags: Foreclosure House

Legislators in Texas are trying to slow down foreclosures. A bill has already got the green signal from the Texas State Senate. It will allow for more time to be given to the borrowers to workout their problem, seek legal assistance and or search for buyers of the units. But the advocates supporting the cause of the homeowners opine that the bill does not fully address the problem.

Texans facing foreclosure could lose their home in 41 days. It is the fastest foreclosure process in the entire country according to Texas Housing and Community Affairs Department.

Jane Junkin of Houston Acorn said, “We have seniors who were put into these adjustable-rate loans when they needed to pay their hospital bills. To save their houses we need more tools.”

During the first quarter of 2009 Texas recorded 25,259 home foreclosures. It is a 14% increase from the previous quarter – the last one of 2008, according to RealtyTrac. It is 9% higher than the rest of the country. In Texas unemployment increased to 6.7% in March 2009. In March 2008 it was 4.6%.

There is lot of talk about loan modification and refinancing but in reality the process is difficult with the banks not being in a cooperative mood. One of the victims of the crisis Julian San Miguel said, “It can be complicated. I had to find the right person at the bank. It took me a while to find someone to help. I honestly could have used another month and probably more.”

Other two sufferers were Carlos Perez and Belinda Castillo of El Paso who had not been able to pay their mortgage dues for two consecutive months. In January they were served with a notice and two months later their three bed-roomed house was sold off at an auction.

In Illinois and Delaware the homeowners get more time – even as long as a year.

In the new bill the cure period would be lengthened to 45 days from the currently 20 days. The bill was sponsored and proposed respectively by Senator Craig Estes together with Greg Abbott the attorney general. So far Governor Rick Perry has not taken any stand on the aforesaid bill. Estes, Abbott and Perry are all Republicans.Before the House adjourns on 1st June it is expected that the process of voting will be over. The Senate passed it on 24th April.