2008 Senate Bill 1307 (Prohibit enforcement of residential tax foreclosures for two years )

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Introduced by Sen. Dennis Olshove on May 7, 2008, to require courts to postpone a final judgment on a delinquent tax foreclosure during the two-year mortgage foreclosure moratorium proposed by Senate Bill 1306.
- Referred to the Senate Banking and Financial Institutions Committee on May 7, 2008.

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Comments

Introduced by Sen. Dennis Olshove on May 7, 2008. New Comment

1) Big Brother rears its head [by Anonymous Citizen on May 9, 2008]
I agree with the previous post, but it is not only interference with bank contracts. there is a ripple effect when you tell private citizens who sold on land contract that they have to allow two years without payments before they can foreclose. For many citizens, this is money they rely on. It is their cash flow. Their retirement income. Although the court can order payment, the truth is the situation wouldn't exist is the purchaser was making payments. This will be costly for land contract holders. They will be paying for legal fees and not receiving any income on the property. This is Big Brother stepping in and voiding private contracts. What a horrible, economically devastating decision. Why would I want to do business in a state that sets a precedent of carte blanche voiding contracts to which the state is not a party? This is an unconstitutional taking of property rights.
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2) Repeal Law of Unintended Consequences [by Mike Hignite on May 9, 2008]
I understand that you want to help our fellow citizens who are having problems, but this won't do it. What will this accomplish?

Some people may be able to hold on to their houses, and many won't.
Banks will take a hit, dropping their income and ability to fund new mortgages.
By interferring with private contracts, you will make it less likely that banks will make new loans, and those that are made will now have an interest rate premium attached to it to make up for the losses you legislate.
The inability to finance houses will disrupt teh economy, making it harder for people to sell adn move, or to move here & finance a house.
By interferring with private contracts, you put a chill on any new business activity in the state. Every new company you want to attract will wonder if they are the next company to have arms-length negociated contracts set aside.

The law of unintended consequences strikes again. Just let the market work out these problems. Some people will lose their homes, but that will happen anyway. The only question is now or later.
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