Foreclosures have a front row seat in the mainstream press these days. What options does a homeowner truly have when faced with this dire prospect?
According to a USAToday piece, in cities like Philadelphia, courts are getting involved.
Sheriff’s sales cannot go forward without a last-ditch effort by the lender and homeowner to work out a deal.
To some, suing the lender sounds like a viable option, but it really flies in the face of capitalism for a business to loan money to someone they believe won’t be able to pay—there’s no money in it. I doubt these suits will ever make it court.
How is our city, Louisville, reacting to the problem? According to the article:
Louisville, also is giving out up to $5,000 in loans. The loans will be forgiven if the homeowner stays put for a decade. The city has teamed up with the United Way to offer access to housing help in addition to the charity’s social services.
Surely a short-term fix, but one that could certainly help a good portion of homeowners facing foreclosure. Way to go Louisville!