Mr. Edward Comes To Aid Of Foreclosure Sufferers

August 23rd, 2007

The former senator of North Carolina, and also a presidential contender, Democrat John Edwards is not in favor of the lenders who are filing foreclosure cases against the delinquent homeowners - especially those who are sufferers of Hurricane Katrina. Fortress Investment Group’s sub-prime lending unit has filed foreclosure suits against the 35 homeowners in New Orleans, as pointed out by The Wall Street Journal.

The interesting part is that John Edward himself is linked indirectly with the lenders. His $ 16 million is invested in the Fortress Funds. Fortress is a publicly listed private equity fund, and Mr. Edward worked in the company in 2005 and 2006. This data was released in the report of the Federal Election Commission as an aid for the campaign.

This disclosure of his connection with Fortress can provide some relief to the delinquent house owners in New Orleans. Mr. Edward assured the people that he will himself extend financial support to those who have lost their property already or who are about to face the foreclosure by Fortress. This statement was made by Mr. Edward only when he was enquired about the subject.

He also added that he will not be investing any more of his family’s money in the firm. If the firm has profited from filing suits against these delinquent loans, then he will dissociate his investments from it. He will not maintain a portfolio that is gaining from someone else’s losses. He said he will not continue to invest in the firm if it has a stake in the foreclosure homes.

But there is still an uncertainty about how he is going to work this out, either by modifying his assets or by aiding borrowers. However, his plans are to contact the homeowners of New Orleans first, and then to see how much they have proceeded. He wishes to provide help either by extending funds from his own pocket or in partnership with a charitable trust specialized in revamping homes.

Foreclosures and sub-prime loans on real estate was the main agenda of Mr. Edwards’s campaign trail. He continuously attacked the sub-prime mortgage firms and their disgraceful lending practices. He said because Washington not acting seriously on this issue, lenders got their strength to torture hard working homeowners. He spoke against lenders who are issuing foreclosures in Louisiana, which was recently badly hit by a storm. He visited Lower Ninth Ward in April to raise his voice against the poverty caused by the foreclosure crisis in the real estate properties there.