Foreclosure Intermingled With Politics – A Potent Combination

The foreclosure issue is being used in the political scenario as well. While the Clinton campaign was approaching registered Democrats to invite them to come to the speech, a staff member happened to find Kristi Schofield of Hampstead.

Kristi and her husband are being foreclosed and hence are forced to move out of their house by the 24^th of august. Being parents of three children, this is not an easy situation for them. Hence the Clinton campaign approached her and asked her to meet Clinton. Kristi’s husband, a computer security consultant, lost his job while outsourcing. In the mean time, their adjustable rate mortgage leaped to about three times from $2,400 a month to $6,000 a month. Consequently, she had to stop her daughter from attending dance classes and sell some of the DVD’s. Just to hold back to the house, she even cashed out her husband’s retirement fund.

They saw that everything they had was eventually being used to pay the mortgage. Even they faced major money shortage due to the foreclosure problem that they were facing. Along with banning the prepayment penalties, Clinton also required lenders to include insurance and taxes in their calculation irrespective of whether the borrowers can afford to pay the mortgage amount. She was in fact seeking to give a boost to the state licensing standards for brokers and to publish an online registry detailing brokers’ employment histories and complaints against them Clinton said she would introduce legislation after Labor Day.

Along with banning more lending practice than Clinton, Edwards wishes to rewrite bankruptcy laws and to create a fund to facilitate homeowners to free themselves from “underwater” mortgages which in fact is greater than the value of their homes. Amongst the top-tier Democratic contenders, Edwards is the one who has campaigned most sincerely and with vigor on the problems of working people. In his campaign, he tried to show that Clinton was late in her response to this relevant issue. And even the response was not strong enough to bring about the desired change in the situation.

Edward’s spokeswoman, Colleen Murray, said in a statement that “The Edwards plan remains the most aggressive. He supports a national law that would prohibit abusive lending practices, no exceptions.”

Dodd’s campaign led to same kind of reaction. His spokeswoman, Colleen Flanagan, said that “Addressing the crisis will require more than rhetoric on the campaign trail”. But Congress, which also includes Dodd’s committee, has not done much than holding hearings since the current crisis started and has added to the problems by making the regulatory requirements rather loose.

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