The Virginia Senate took a big step this week and unanimously approved moratorium on foreclosures for homeowner with high risk mortgages. The bill, SB 797,
introduced at the request of Governor Tim Kaine, provides a one month
moratorium on all high-risk mortgage foreclosures. The measure is much
needed relief for a state that has foreclosure rate increases of more
than 750% in some areas.
The effects of the sub-prime lending disaster are
being felt as the stock market has been rocked in
recent weeks and many families find themselves locked out of the
mortgage market. As we
in the past, the subprime mortgage market was largely aimed at
economically-strapped families trying to find some way to afford
homes. For low-income renters who never had the money to
even be in the game, rising rents have increasingly priced them
out of their homes.