The increased pace of Atlanta home foreclosures has prompted legislators to step up their efforts in passing laws that can help cut down home foreclosures in Georgia.
According to a report from Equity Depot, over 10,000 households were given notices of default and foreclosure in metro Atlanta this February, marking a 27-percent increase over distressed numbers in January.
Georgia Representative Mike Jacobs told his fellow legislators at a House subcommittee hearing that if the foreclosure problem is not addressed this year, the problem will arise again in the next several years.
The House subcommittee started examining bills that would modify mortgage laws in Georgia and also began checking whether these bills might be in conflict with several mortgage law changes being made in the U.S. Congress. Georgia legislators want to have tougher mortgage laws in the state.
One of these laws is HB 972 which was aimed at lengthening the foreclosure period in the state from 30 days to 90 days. Georgia is among states which have the fastest process in turning a distressed house into a foreclosed home for sale.
Another state legislation aimed at cutting down Atlanta home foreclosures is SB 57 which was already passed by the Georgia Senate 2009. This bill would make significant changes in state mortgage law, including eliminating prepayment fees and requiring mortgage banks to make sure home loan applicants have adequate income before their loan applications are approved.
A bill initiated by Georgia Governor Sonny Perdue through Senator Bill Cowsert aims to address mortgage fraud, which has again put Georgia in national mortgage news. According to reports, Georgia is fourth in the country in fraudulent mortgage activities.
The bill would create a Mortgage Fraud Task Force that would focus on prosecuting mortgage lawbreakers in the state, regardless of whether the fraud is initiated by the loan applicant or the lender.
Meanwhile, another foreclosure news involving prominent Atlanta home builder John Wieland shows how the housing crisis has affected builders. Wieland is facing foreclosure actions on three of his model homes in the Reunion subdivision in Hall County and on one of his Weston subdivision homes in Forsyth County.
The homes, built by John Wieland Homes and Neighborhoods, are scheduled to be sold through the public foreclosure auction in March.
However, Wieland insisted that the properties will not be added to lists of Atlanta home foreclosures because he is committed to the continued development of the Reunion and Weston projects.