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New foreclosure bill could affect DC residents

With the economy being the way it is, it can be very difficult to keep up with all of the daily costs of living. Many individuals in the Washington, D.C. area have found themselves dealing with a foreclosure or bankruptcy. Due to job loss and a high number of bills, many families are facing the very real possibility of losing their homes.

Recently, several U.S. Senators introduced the Regulation of Mortgage Servicing Act to help homeowners and lenders alike. According to a lead author, the bill would reduce the number of communication snafus between lender and borrower, and both sides would benefit from more transparency from mortgage servicers.

Under traditional foreclosure processes, a family that is being considered for non-foreclosure alternatives is at the same time undergoing the foreclosure process. The Regulation of Mortgage Servicing Act would bring an end to that, allowing homeowners the full benefit of the doubt while they sort things out. The bill also would require that an independent, third-party review be conducted before the bank can move ahead with foreclosure proceedings.

Dealing with loan companies has been a very frustrating process for many D.C. residents. The same loan company can give different and often conflicting advice, and the result is often financial distress for their customers. Many homeowners have given up and gone into foreclosure. The new act will require the loan companies to have one contact for homeowners to talk to.

More than 1 million U.S. homes were foreclosed on last year. In the District of Columbia, the number of foreclosures declined from 2009 to 2010.

Source: Canadaviews.ca, Akaka cosponsors bill to protect homeowners facing foreclosure, Senator Daniel Kahikina Akaka, 15 May, 2011

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