The Foreclosure Report

100,000 Potential Foreclosures In New Orleans

The Associated Press reports on efforts to stem the flood of hurricane-related defaults. "The New Orleans mayor urged Congress on Thursday to provide aid to homeowners hurt by Hurricane Katrina, cautioning that thousands of poor Louisiana residents might not return otherwise."

"The House committee is reviewing a bill to help property owners in areas of Louisiana hit by Katrina avoid massive defaults on home and business loans while working to rebuild communities. The bill would create a federal entity, a Louisiana Recovery Corporation, that would purchase the property of willing sellers and pay off lenders through bond sales. Former owners would have first right to repurchase the lots after they've been restored."

"Rep. Richard H. Baker, R-La., the author of the bill, said the legislation was needed soon to avoid mortgage foreclosure notices on up to 100,000 homes as early as January."

posted by Ben Jones @ 12:58 PM