Those seem like fair things to put in a law, so why the opposition? It’s that old legislation bug-a-boo – the unintended consequences of seemingly good laws. In this case the fear is that lenders, faced with onerous restrictions on their future ability to take foreclosure action, will shut down lending. The argument is, “why would lenders take the risks involved in mortgages without the ability to take foreclosure actions at a reasonable cost and within a reasonable timeframe?”
This is probably a classic case of where doing nothing is the best course of action. Unfortunately it is not playing out at the Federal level where doing nothing is the order of the day. It is also playing out right now in California, one of the most liberal and activist states in the union. I suspect that most people might agree that lenders needed to be taken to the woodshed for some of their foreclosure practices; however, the thought of a bunch of legislators (no matter where) trying to figure out and put into law “what is good for us” is just scary.
Please help us all out here and do nothing. Thank you.