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Congress Should Not Enact a 3-6 Month Foreclosure Moratorium According to Latest ABI Quick Poll

Contact: John Hartgen
               (703) 739-0800
               jhartgen@abiworld.org

 

CONGRESS SHOULD NOT ENACT A NATIONAL 3-6 MONTH FORECLOSURE MORATORIUM, ACCORDING TO LATEST ABI QUICK POLL

February 2, 2009, Alexandria, Va. — A large majority of respondents (60 percent) in a recent ABI Quick Poll think that Congress should not pass legislation providing for a national 3-6 month foreclosure moratorium in response to the housing crisis. Fifty-two percent of respondents “strongly disagreed” and 8 percent “somewhat disagreed” that Congress should pass legislation establishing a national foreclosure moratorium for 3-6 months.

However, 36 percent of respondents agreed that Congress should pass legislation providing for a national 3-6 month foreclosure moratorium. Thirty percent “strongly agreed” and 6 percent “somewhat agreed” that Congress should pass legislation suspending foreclosures for 3-6 months. Two percent of respondents did not know or had no opinion on the issue.

The Quick Poll was based on proposals to suspend foreclosures nationwide for 3-6 months, such as the 90-day moratorium recently recommended by Senate Banking Chair Christopher Dodd (D-Conn.) as part of the economic stimulus package. Many states have explored the idea of foreclosure moratoriums as a method of easing the housing crisis. Proponents of a national foreclosure moratorium say that it would give distressed borrowers and lenders time to seek financial relief.  Opponents of a national foreclosure moratorium argue that it could delay the recapitalization of the banking system and delay the restoration of stability in the financial markets and financial relief to homeowners.

ABI members and members of the public were welcome to submit their response to the statement: “Congress should pass legislation providing for a national, 3 to 6 month foreclosure moratorium.”

ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.