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Nazareth, Pa., United States

Friday, July 11, 2008

McClure Proposes Sheriff Sale Moratorium in Northampton County

At Thursday's county council meeting, Lamont McClure introduced a resolution that directs the county executive to impose a ninety (90) day moratorium on Sheriff's Sales. That's an idea I suggested myself in early May.

I never expected anyone to take me seriously.

McClure argued that a "segment of the middle class" is being "crushed" by the home mortgage crisis. He acknowledged some of us "have made bad bets," but many more of us are victims of predatory lending. To back up that point, he noted that 70% of the people with adjustable rate mortgages would have qualified for a fixed rate. A temporary moratorium, followed up by a conciliation process between homeowners and lenders, would give us a "little more breathing room."

Ron Angle, however, had a completely different view. "I'm baffled as to how government can break a legal document," he said, referring to recorded mortgages. He claimed the last thing a bank wants is our houses, but called a sheriff's sales a necessary "cleansing mechanism." Well, if a home is the last thing a bank wants, it should be willing to sit down with the owner. Finally, Angle argued that gas prices are what are really killing us. "You want to know what will finish people off? It's $4.50 per gallon gas."

At the urging of Peg Ferraro, McClure's resolution was tabled so that county exec John Stoffa could research whether he has the authority to impose a conciliation process. Courts supervise foreclosure proceedings, so it would be necessary for judges to adopt local rules requiring a sitdown. That's been happening in Philly. It's also being considered in Bucks and Allegheny County.
Update: Both The Morning Call and Express Times report this proposed moratorium. The Morning Call distinguishes sheriff sales from tax sales, but many properties are listed for sheriff's sale because of unpaid taxes. Portnoff, a private tax collector, does that all the time.

4 comments:

Anonymous said...

Did Mr. McClure introduce any evidence that Northampton County is so heavily impacted by illegitimate mortgage lending activities that it needs to consider this?

I agree w/ Angle.

The Banker

Brad Moulton said...

I would agree with the banker.

NC "should" ONLY have authority to put a moratorium on the tax sales as these are obstensibly used for unpaid county taxes.

But I fail to see the legitimacy of the county stepping into a private contract between two parties.

I know, I know those predatory lenders are all to blame (wink, wink) but honestly, when someone was buying their 360K house with a 30 year mortgage and only paying $500/month, didn't they realize what was going on?!

Anonymous said...

Buyer beware! Takes two to tangle but I have little sympathy for people who buy things they know they can't afford. Live within your means and the problems are a lot smaller and easier to deal with!

Anonymous said...

You people are kidding right? You actually want to hold people accountable for their decisions and actions? Why don't we just do away with their credit card debt to help them out? I'm sure the government can pick up that tab....

By the way, I want a new 56" plasma tv and a new fully loaded 40k car too. I guess I'll just have live with my 10-year old Nissan and dump my money into my 401k and kids college fund instead!