Increasing unemployment numbers are putting many who have lost their jobs into foreclosure, said Rep. Jeff Hayden (DFL-Mpls). He would like to see a two-year moratorium on mortgage foreclosures and sponsors HF2604 that would give people time to work out a loan modification, if possible.
“This is where people live, raise their children and they create their family legacy … this bill is to keep people in their homes,” Hayden told a joint meeting of the House Housing Finance and Policy and Public Health Finance and the House Labor and Consumer Protection divisions.
Rep. Larry Howes (R-Walker) said he could support a moratorium if, in the end, the bank receives the interest that it is owed.
“Sounds like we’re on the right track if the homeowner gets a chance (to work things out), and the bank gets its money in the end,” he said.
The bill would also offer protection to renters who pay their rent on time, but are asked to move because the building’s owner is facing foreclosure. It would also provide some clarification regarding leases in this situation, along with renter notification regarding the building’s status and utility connections.
No action was taken, but the bill could see official action once session reconvenes on Feb. 4.