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Detroit Activists Want A Two-Year Moratorium On Foreclosures

Detroit Activists Want A Two-Year Moratorium On Foreclosures

In 2011, almost 2 million Americans entered the stressful and often embarrassing foreclosure process. Yes, some of these people made bad decisions about how much house they could afford, but many more were tricked or even coerced into mortgages that the Big Banks knew they could never pay off.

The Occupy Wall Street movement has been instrumental in exposing the deceitful and often fraudulent foreclosure practices in which these banks were, and continue to be, engaged. Since its beginning in September 2011, local occupiers and their online networks have helped to stop wrongful foreclosures on police officers, military veterans and the elderly.

Now, a coalition of activists from Detroit is sounding the call for a national moratorium on foreclosures, and challenging foreclosures and evictions in Michigan for the past five years.

The Moratorium Now! Coalition invites all activists to come to Detroit—the city hit hardest by the economic war on the 99%—for a one day conference on March 31, 2012.

“The conference will be an opportunity to share our experiences fighting foreclosures and evictions through direct actions,” reads the group’s website. “We will share legal strategies in challenging the banks in federal and state courts.  And we will plan a campaign to raise and win the demand for a National Two Year Moratorium on Foreclosures and Foreclosure-Related evictions.”

Although the idea that the federal government would simply prohibit banks from pursuing foreclosures seems radical, it’s actually happened in America before.

In the 1930’s, 25 states enacted moratoriums on foreclosures. The Michigan Moratorium Act meant that anyone facing foreclosure got an automatic 5 year stay on the foreclosure, with a judge ordering a reasonable payment based on the homeowner’s ability to pay.  These laws were upheld by the U.S. Supreme Court in the case of Home Building & Loan Building Association vs. Blaisdell, which held that the people’s right to survive during an economic emergency superseded the contract clause of the U.S. constitution.

Related Reading:

Banks Overcharged, Improperly Foreclosed On Military Families

Five Major Banks Being Sued For Illegal Foreclosure Practices

How To Solve The Housing Crisis?

Image Credit: Flickr – taberandrew

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4:59PM PST on Feb 15, 2012

Why in the world would you think a bank would want to coerce someone into a mortgage the bank knows they could never pay off? The banks don't want to be stuck with it - they're not in the real estate business, and they certainly don't make money on it. We bought a foreclosed house, and the bank lost a lot of money on it from the previous owner. People have no business buying a house that they can't put at least 20% down on.

1:05PM PST on Feb 11, 2012

It'ts about time and let it spread thru out the country.Responsibility? How about not allowing such massive loss of homes during a recession in the first place.People liveing in their cars or homeless shelters, crowding in together in high stress situations,while houses sit empty instead of at least paying a pittence to the banks if that's all the buyers can afford. People need hope and help and a fair chance to start over in a stable economic environment. Real needs of real people trump self rightous posturing about responsibility and bad decisions.

12:45PM PST on Feb 9, 2012

that's right, take no responsibility for your actions and bad decisions

12:02PM PST on Feb 9, 2012

You must be in the banking or mortgage business. Typical response,

10:54AM PST on Feb 9, 2012


10:44AM PST on Feb 9, 2012

Oscar J. Sounds great, But I believe most of the people wanting this bill are thinking it is a way to not pay for 5 years and worry about it down the road which is what got them in to their mess.

9:50AM PST on Feb 9, 2012

i don't agree i am afraid. there has to be better ways.

9:39AM PST on Feb 9, 2012

Empurre esse estado e esses banqueiros na Europa passa-se o mesmo casas epotecadas e colocar as pessoas na rua os politicos e os adimistradores dos bancos tanto na América como na Europa tem que morder a castanha

6:20AM PST on Feb 9, 2012

Push for this in your states..foreclosed homes put people out on the street..devalue the homes in the neighborhood and invite vandalism. Push back against the banks

6:01AM PST on Feb 9, 2012

Needs to be done.

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