Addressing Foreclosures and Short Sales is Critical

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Mr. Speaker, homeownership is one of the cornerstones of the American Dream; yet, since the 2007 housing crisis, millions of Americans have lost their homes through the foreclosure process, and many more continue to struggle.

Addressing foreclosures and short sales is critical. Accelerating the short sale process for homeowners would be part of the solution.

Unfortunately, in California and across the country, one of the most significant factors that slows down the short sale process takes place when a homeowner's second mortgage lender delays final negotiations on the short sale; and too often, second mortgage lenders use stonewalling tactics to delay payouts from the first mortgage lenders. This, unfortunately, delays and hurts the homeowners, willing buyers, and the economy at large.

After further investigation on this issue, I will be introducing a bill to address short sales and ask the Federal Housing Finance Agency to provide an update on what it is doing to facilitate short sales and protect homeowners.

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