Legislators in Utah are Trying to Find Ways to Bring down the Number of Foreclosures

Legislators in Utah are Trying to Find Ways to Bring down the Number of Foreclosures


For the third running year Utah ranks among the worst foreclosure affected states – the rate being high. Two state legislators are keen to   take action. According to RealtyTrac,  Utah ranked fifth with the   highest foreclosure rate in the country in 2010. It calculated to a hike   of 20% from the previous year and a jump of 119% from 2008. Out of   every 29 houses in Utah one was in foreclosure.

The housing crisis is worsening in Utah and requires immediate   attention said, Senator Ben McAdams (Democrat/Salt Lake). He said, “The   reality is that we’ve got an unprecedented crisis that needs to be   addressed and we want to do that in a way that is responsible. What I   think we’re trying to do is restore transparency to the real estate   process”.

The housing section has been vitiated with lack of transparency   between the local residents who had taken loans from lenders coming from   outside the state. The scenario has been further poisoned with the   securitization of the mortgages with Wall Street having a big hand in   the game.

McAdams said that it was not that it would be made compulsory   for borrowers and lenders to reach an understanding. What was being   aimed at by the legislature was that the borrowers should be able to   reach the lenders and communicate with them.

McAdams said that the measures mulled over in Utah have produced good   results in adjacent states that have also been weighed down by the   foreclosure crisis. He explained, “What we’ve seen in Nevada is that a   similar programme has had a significant ability to reduce the rate of   foreclosures”.

McAdams was speaking at a forum sponsored by himself and Rep LaVar   Christensen (Republican/Draper) to talks about the mortgage crisis in   the state and to step up efforts to contain the increasing number of   foreclosures.


Christensen said that the prime difficulty was the disconnection   between the lenders and the borrowers – it being a yawning gap for many   years; this has to change. He said, “All of the local leaders I’ve   talked to seemed compassionate and understanding. Most of the homeowners   have said, ‘If I could just talk to the person who is the decision   maker and talk out solutions’”. In all likelihood this could lead to   avoiding a good number of foreclosures.

Tags: foreclosure, Nevada, Utah; Legislators ; Foreclosures
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