Moratorium on Foreclosing of Homes Sought

WASHINGTON, Aug. 26.  Chairman Franklin Fort of the Home Loan Bank Board told the United Press that the administration is seeking a 60 day moratorium on foreclosure of all mortgages in the United States.

Fort said the program included mortgages on commercial plants as well as private homes and that cooperation of active financial institutions as wells as those in the hands of receivers would be sought.

The above quote is from The Berkeley Daily Gazette Aug 26, 1932

Will history repeat itself?   Will our government make the same mistakes that prolonged the first depression?

Banks increase short sales as MERS foreclosures come into question.

The MERS debacle is having the effect of causing banks to utilize short sales as a way to mitigate losses. MERS stands for Mortgage Electronic Registration System, and is the nominee assigned by lenders to facilitate trading of securitized portfolios of notes guaranteed by deeds of trust.

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MERS allowed lenders to circumvent local recording fees to municipalities by keeping the records electronically. The problem is that recently courts have thrown out foreclosures because MERS has no legal standing since they are neither the maker of the note nor a beneficiary.

Watch this video of Rep Grayson.