Governor of Minnesota Weighs Options of Foreclosure Bill

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Governor of Minnesota Weighs Options of Foreclosure Bill

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It seems that Tim Pawlenty, the governor of Minnesota, is in quite a predicament. The Minnesota legislature has spent the past few weeks building and revising a bill that attempts to combat foreclosure in the state, and the bill has finally come across Pawlenty’s desk. Minnesota’s citizens are hungry for legislation to combat rising foreclosures in the state, which are currently at record highs. Homeowners are losing their property in huge numbers, and as 2008 goes on, experts are only predicting the situation to get worse.

The bill, called the The Minnesota Subprime Borrower Relief Act would seek to help homeowners held under sub prime and adjustable rate mortgages by allowing them to defer mortgage payments for up to one year and use the time to catch up with their back payments. However, Pawlenty’s situation is unique. This is exactly the kind of bill that John McCain and the republicans he represents are against, as they fear it would only make it harder for other homeowners to obtain loans as lenders would tighten up lending due to the delayed payments. And as one of the top candidates to be John McCain’s vice presidential running mate, Pawlenty is stuck between a rock and a hard place.

Pawlenty has also indicated that he is inclined to veto the bill, saying that while it would help sub prime borrowers it would hurt all other citizens seeking credit. But with citizens statewide urging him to pass the bill, he is stuck between adhering to the party line and pleasing the citizens of his state. Keep your eye on the developments regarding this foreclosure bill.