Foreclosure Prevention Measures Begin to Trickle Down
Posted on March 18, 2009
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A Baltimore City Council Bill intended to slow foreclosures has come up against opposition from lawyers alleging that it is against the provisions of the state and federal constitutions.
Councilwoman Mary Pat Clarke and Councilman Bill Henry introduced the bill. As per its terms the period between foreclosure and eviction would be lengthened from 14 days to 365 days. The legislators feel that the bill would give a strong incentive to lenders to negotiate rather than wait for such a long period to take possession of the house.
But the legal opinion about the bill is unfavourable and this could slow down the pace of the passage of the bill. Mayor Sheila Dixon would be prevented from signing the same. The Mayor’s spokesperson Scott Peterson said, “Our legal department has found that this legislation is not in accordance with state and federal law.”
Clarke, with her long experience behind her, was optimistic that the latest move would not kill off her bill. She described the correspondence of the lawyers as “lawyers writing words to stop laws that need to be passed.” She added by referring to the law office, “They may not like it. They many not want it.” Of the 14 council members, 11 have given their signature. Councilman Bill Henry declined to say anything on the matter.
Suzanne Sangree, The Chief Solicitor is of the opinion that the suggested changes would upset the “careful balance of the creditor and borrower’s interest” that had been codified as the law of the state. She also argued that the alterations would be in violation of the contract of the US Constitution clause because of lack of apparent government justification for taking such a step as changing a contract.
If the bill becomes law then those being foreclosed upon would retreat into a nowhere land of “housing limbo.” The dichotomy is that the owner may not be required to maintain the house as per code while waiting to be evicted. Neither would the lenders be liable.
The Director of research and policy of Community Law Center, Robert Strupp helped in the writing of the bill. He does not agree with the views of Sangree. He said that the city has a clear incentive and justification in preventing foreclosures that lead to more properties lying vacant. This overrides all constitutional points of dissent. He is hopeful that a middle ground would be reached that would be ultimately for the good of all.
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