Council passes resolution calling for 90 day foreclosure moratorium
By: Staff 02/01/2008
Minneapolis City Council Members passed a resolution on January 18 calling on subprime lenders to voluntarily suspend foreclosures for Minneapolis owner-occupants for 90 days.
Supporters of the resolution argue that, if lenders agree to the voluntary moratorium, it will provide a window of time for the industry to work with local governments and community-based organizations to conduct aggressive outreach, counseling, and the facilitation of loan modifications for every family possible.
Jim Jackson, co-chair of North Side ACORN (an acronym for the Association of Community Organizations for Reform Now), said, “I want to thank Minneapolis City Council Members for taking a stand today for Minneapolis homeowners facing foreclosure. Now we need lenders to come forward and work with us to help families save their homes.” Jackson came to ACORN in 2007 when his family was facing foreclosure due to a predatory loan.
This resolution, originally proposed to Minneapolis City Council Members by ACORN in September of 2007, is part of a broader strategy to preserve homeownership in the city. ACORN has already been going door-to-door in neighborhoods hardest hit by foreclosures, connecting families to loan counseling. During the 90 day foreclosure freeze, ACORN and other community groups will more aggressively reach out to families who are stuck in predatory loans that are still adjusting and leading to increased delinquencies. These organizations will continue their work connecting these families to foreclosure prevention loan counselors who can assist them in negotiating with their lenders with a goal to modify the loan into an affordable one.
Because many of these foreclosures also include rental properties, the resolution challenges lenders holding rental properties to honor existing leases and keep these properties occupied with tenants. Foreclosures at many of these properties have led to unnecessary evictions for tenants and ultimately to a rise in vacant properties.
The number of foreclosures in the City of Minneapolis tripled in 2007. This tidal wave of foreclosures, resulting largely from the rapid increase in subprime lending, was accompanied by a tripling in vacant and boarded Minneapolis properties at a cost to the city estimated at $1.9 million.
If you are a homeowner currently facing foreclosure, please call ACORN at (651) 642-9639 or the ACORN and Minneapolis Urban League SHARC Housing Crisis Center at (612) 827-9299.