Presidential Candidates Differ On Foreclosure Fix

Democrat Party presidential hopefuls Hillary Clinton and Barak Obama have been talking about the foreclosure mess recently, with Ohio, a state hit hard by foreclosures, going to the polls on March 4, 2008.

The candidates differ on how they would approach fixing the foreclosure crisis.

Clinton believes that government intervention is necessary. She proposes ceasing foreclosure proceedings for 90 days to allow borrowers and lenders to work on modifications, instituting a five-year interest-rate freeze on adjustable-rate, subprime mortgages for primary residences only, and the use of government-backed mortgages to refinance borrowers who can no longer manage their monthly payments.

On the other hand, Obama believes that government involvement will force lenders to put the brakes on making new loans and modifications. Instead, he is focusing on stricter penalties for predatory lenders, tax credits for mortgage interest and a $10 billion fund dedicated to preventing foreclosure and assisting first-time buyers.

Source: REALTOR® Magazine Online