Minnesota Lawmakers To Consider Imposing "Deferment" On Subprime Lenders Seeking Foreclosure

In Minnesota, the Minneapolis Star Tribune reports:

• Minnesota homeowners facing the loss of their houses could stop foreclosures and make reduced payments for up to one year under a bill that will get its first legislative hearing today.

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• [Sen. Ellen] Anderson, chief sponsor of the Minnesota Subprime Foreclosure Deferment Act in the Senate, said, "It's going to offer breathing room." And, she said, "it will offer an alternative to lenders who do not want to be in the real estate business." The measure (HF3612, SF3396) would allow homeowners with subprime loans to pay roughly 65 percent of their monthly mortgage payments, deferring the remainder for one year. Homeowners would have to live on their properties during that year, and even one missed or late payment could restart foreclosures.

For more, see A freeze to keep lenders at bay? (Minnesota homeowners facing the loss of their houses could stop foreclosures and make reduced payments for up to one year under a bill that will get its first legislative hearing today).