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State Representative Sheldon Johnson
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4201
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E-Update
2012 SESSION UPDATE
Dear Neighbors:
In maneuvering to finally get our foreclosure plan a hearing on the floor of the House, Democrats tried to amend a GOP bill on banking laws with a plan that would provide some assistance to Minnesota homeowners facing foreclosure. We took this step because it had become obvious that our proposal to help Minnesotans hardest hit by the foreclosure crisis was not going to receive committee hearings.
I supported these two amendments we debated on Wednesday. The first would have required banks to be more expedient in their approvals of short sales. Some homeowners looking to short sale wait months, sometimes a year, to hear from their bank regarding the approval of a short sale. The second amendment would have prohibited lenders from charging for services they did not provide.
It was a small fraction of the House DFL plan to address the foreclosure crisis. The bill helps responsible homeowners who are up to date with their mortgage payments but still facing barriers, like being “underwater,” that prevent them from taking advantage of historically low interest rates by expanding their refinancing options.
It also:
· Prevents needless foreclosures by providing a 12-month stay of foreclosure proceedings for unemployed homeowners who have lived in their home for 10 years.
· Increases transparency for homeowners applying for loan modifications by requiring banks to provide clear and straightforward eligibility criteria and protects homeowners against unnecessary foreclosure, including right of appeal.
· Makes “dual tracking” illegal so banks are not allowed to foreclose on a house while a loan modification is pending.
The Republicans rejected all amendments largely on party line votes.
While our economy is showing signs of improvement, many homeowners and neighborhoods are still feeling the impact of the home foreclosure crisis. In fact, Minnesota has the 17th highest foreclosure rate in the nation, with more than 21,000 foreclosures in 2011. The impact continues to stall a full housing market recovery and a robust and lasting economic recovery.
Since the start of the foreclosure crisis, DFLers have diligently introduced legislation that would have helped Minnesotans stay in their homes. At every step of the way, the Republicans have stymied those efforts. In fact, in those five years, Republican legislators have yet to introduce one responsible bill to address the crisis that has touched so many middle class Minnesotans.
As Republicans maintain their focus on corporations and special interests and divisive constitutional amendments, DFL lawmakers will continue to work on issues that will aid Minnesota’s middle class and create jobs for unemployed Minnesotans.
Sheldon
News Items
- 2012 SESSION UPDATE - (Posted: 2012-05-01 00:00:00)
- 2012 SESSION UPDATE - (Posted: 2012-04-26 00:00:00)
- 2012 SESSION UPDATE - (Posted: 2012-04-19 00:00:00)
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