According to an article in the Dallas Morning News, John Reich, director of the Office of Thrift Supervision urged over 800 thrift institutions to suspend all foreclosures pending the release of President Obama’s plan designed to combat foreclosures.
The article quoted Reich:
“We’re urging them to do it, but we’re not going to try to force anyone to comply,” said William Ruberry, a spokesman for the thrift agency. “We thought it was reasonable – because the details (of the government’s plans) are expected to be imminent.” Of course “we’re not going to try to force anyone (banks) to comply” because we are not taking this foreclosure crisis serious enough. Homeowners facing foreclosure are being forced to comply with toxic mortgages that should have never been allowed on the marketplace and that they can’t modify (in many cases) because no one wants to force anyone (banks) to comply or do something that might make them uncomfortable (or lose a profit).
This is why it has been so difficult to pass legislation that will allow homeowners facing foreclosure to modify toxic mortgages in Chapter 13 bankruptcy . We must stop walking on egg shells with banks and mortgage servicers, it is time to look out for the everyday homeowners who are at risk of losing their homes to foreclosure if we don’t take effective action now.