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Tag: moratorium

First, Do No Harm

By The Wizard of Laws, Section News
Posted on Thu Mar 12, 2009 at 08:33:28 AM EST
Tags: housing, foreclosures, House, Senate, moratorium (all tags)

(Promoted by Nick...)

Liberals just don't get it.

When government does something, it has an impact. Tax something? You get less of it. Subsidize X? You get more of it. Similarly, when government imposes additional costs on an economic activity, the activity dries up or becomes more expensive.

Such is the case with the state legislature here in the Enchanted Mitten. Today's Macomb Daily reports that the Michigan House has passed a bill that would impose a 90-day moratorium on foreclosures. As reported previously:

"The state legislation would provide a 90-day redemption period for those facing imminent foreclosure. If the homeowner submits to financial counseling offered by state or federal housing experts, they would then enter into negotiations with their lender. The mortgage company would be required to attempt to seek some middle ground -- a loan modification that could prevent the impending mortgage default."

Ah, the genius of our elected officials. Take a contract between two willing parties in which one of them is not performing and force the other -- the one who put up the money in the first place! -- not to utilize its contractual remedies for at least 90 days, while the balance due continues to grow. As I said, genius.