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Monday, October 4, 2010

State taking forever with foreclosure relief money

Oregon's taken in $220 million of federal "TARP" funds over the last eight months, but it's going to be a couple more months before the state is ready to start spending it on its intended purpose of bailing out homeowners who are in over their heads. The merits of these programs seem questionable to us, but dragging them out isn't going to make them any better.

Comments (8)

4 months to form a non-profit. I bet I could do it in two weeks or less.

Puh-leeze - It'll end up just like:

- Last year's $600M stimulus
- The $600M tobacco settlement
- Ted's 20% increase in education spending in 2007

All of it will go to employee benefits and shoring up PERS.

Makes for good PERS cash flow while the housing markets face more foreclosures.

Rep Alan Grayson (D-FL), who has recently attracted much criticism for his campaign attack ads, offers an explanation of the foreclosure fraud crisis:

In FL, he says, the average foreclosure hearing lasts 90 seconds. Perhaps the OHCS can learn something from him about the task of defending Oregon mortgagors from a rapacious industry.

"In FL, he says, the average foreclosure hearing lasts 90 seconds."

OK, anyone can show up on the courthouse steps and outbid the bank to buy their place. That's the problem there usually aren't too many bidders for $300K worth of debt when the house is only worth $150K today. This process doesn't take too long.

Moreover, for foreclosure you need to start giving Notices of Default for a minimum of 90 days with proper notice.

I think the 90 seconds is misleading.

So...I wonder what the State of Oregon is doing with that money meanwhile?

Hmmm.. if the state holds the money, the banks get to claim all kinds of property that is defaulting. Now who in Salem is friends with banks?

LucsAdvo makes and interesting point except for one thing: Banks do not want to be property managers. A non-income producing property is a liability, not an asset. Am I correct?

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