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Bill Proposes Moratorium on Foreclosures

A bill proposes a six-month moratorium on home foreclosures. Housing advocates say it's too early to tell if the bill will actually help consumers.

By Marshall Mcpeek
Published: May 13, 2009

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CENTRAL OHIO -- A bill in the Ohio House of Representatives proposes a six-month moratorium on home foreclosures and would give courts the next three years to modify mortgage agreements.

House Bill 3 would also allow a homeowner to stay in a house after foreclosure and it would set up two trust funds to give homeowners some financial assistance.

The bill was approved by a House committee yesterday.

The Columbus Housing Partnership's Loretta King says it's still a little too early in the legislative process to know whether the bill will actually help homeowners.

“We are just trying to decipher the information, talk to our housing advocates," she says. "We haven't made an opinion about the bill one way or the other yet."

CHP is a U.S. Housing and Urban Development-certified agency that works directly with homeowners who are facing foreclosure.

Counselors try to work with lenders and the homeowners to keep people in their homes.

King says the agency has a host of resources but legislation might be helpful.

“We also want other components, other avenues and tools that are in our toolbox to basically help the consumer,” she says.

Amy Klaben, CHP's CEO, says it is important for consumers not to be confused during a long, legislative process.

“If people are having trouble paying their mortgage, they need to reach out for help,” she says. “Don't wait for the legislation. Get help right now from a HUD-certified counselor.”

House Bill 3 now goes to the full House of Representatives where the Democrats have a majority.

If it is approved there, it will move to the Republican-controlled Ohio Senate.

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