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Representative Champion offers foreclosure moratorium legislation
For the past few years, we have seen the impacts of the unstable housing market result in the home foreclosures of many in our community. While there are those of us lucky enough to have remained relatively stable during this housing crisis, foreclosures impact our neighborhoods and community as a whole.
In an effort to address this issue, I, along with other DFL legislators, have signed on to a bill, HF 1886/SF1521 that would put a two year moratorium on foreclosures, putting a stop to foreclosure related evictions.
This bill would put a freeze on foreclosures of owner-occupied properties for two years, with homeowners being required to pay either their current payment or 41% of their income during the moratorium, whichever is less. Additionally, this bill would allow renters to stay in their homes, should those who own the property face foreclosure. Renters would be required to pay a fair market rent to the current foreclosed for two years after the bill takes effect.
In addition to keeping homeowners and renters in their homes, this bill is also important in strengthening our community as a whole. When houses and apartments go empty, the effects are felt throughout neighborhoods as housing values go down. Keeping people in their homes and keeping properties maintained provides for a safer environment for all members of our community.
We know that in order to achieve prosperity, it’s important to have firm stable roots. The more we can provide for safe, affordable housing to meet our diverse housing needs and promote initiatives such as HF 1886, the better chance our community has to thrive.
Finally, in February, the Minnesota Attorney General announced that the state will share in the national mortgage settlement that involves the five largest national mortgage lenders: Bank of America, JP Morgan Chase, Wells Fargo, Citibank, and GMAC/Ally Financial. Minnesota borrowers will be eligible for up to $280 million under the settlement, including monetary relief, refinancing benefits, and principal reductions. To learn more, call the Minnesota Attorney General’s Office at 651-296-3353 or 1-800-657-3787 or the Minnesota Department of Commerce at 651-296-2488 or 1-800-657-3602, or visit www.nationalmortgagesettlement.com.
As always, it continues to be an honor serving you and our community.
Sincerely,
Bobby Joe Champion
State Representative
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