January 29, 2009
Conceding that Georgia’s foreclosure crisis may be beyond the power of the General Assembly to fix, a bipartisan group of lawmakers proposed a series of reforms Tuesday.Senate Bill 57 would help protect tenants, give local governments more ability to combat the ills of abandoned foreclosed homes and require brokers who sell subprime loans to be more forthcoming about the terms of such deals.
“This will help out around the edges,” said Sen. Bill Hamrick (R-Carrollton), the chief sponsor. “There’s no bill that can solve this problem, obviously.”The proposal is the product of a series of meetings Hamrick has had across the state. He expects a hearing in his committee next week.
The proposal hits issues pushed by local governments and housing advocates.Young Hughley Jr., CEO of Reynoldstown Revitalization Corp., a nonprofit community group, said much needs to be done to protect and restore communities hit by the wave of foreclosures. He welcomed the effort.
“This seems like it’s dealing with some of the factors that got us into this situation,” Hughley said.Under the bill, mortgage companies foreclosing on homes would have to quickly file deeds or face penalties. Many local governments complain lenders fail to file deeds for months, leaving vacant, dilapidated houses.
His bill also gives tenants who are paying on time 60 days before they can be evicted, if the landlord is foreclosed on.Also, those who say they are helping rescue someone from foreclosure only to scam them out of a deed would be blocked from such tactics.
Source:http://www.ajc.com/services/content
