h/t to Mark Perry for this.
The State of California allows constitutional amendments to be created by votes of its citizens in an election process. Using this method, if enough people sign the petitions, and the voters pass it, the following will become law in California.
Here is some of the language below from a ballot proposal in California called the “Foreclosure Modification Act,” scheduled to go on the November 2012 ballot if supporters get the required minimum 800,000 voter signatures. It was approved in late July by the California attorney general for signature collection.
- Makes home ownership a fundamental right for every Californian.
- Prohibits lenders from foreclosing on any California citizen’s personal home.
- Requires lenders to assist California borrowers not making payments on home loans due to financial hardship or illness.
- Requires lenders to reduce mortgage principal to reflect any drop in local property value of more than 10 percent, and to reschedule payments, reduce interest rates, and/or refinance without new credit review.
- Requires lenders to refinance home loans at a minimum cost within 45 days of request if loan has been maintained for three years.
- Provides back property tax assistance to homeowners from local governments (counties, cities, townships, etc.)
Here’s a news report about this amazing citizen’s initiative.
Take a moment to think through the consequences of this initiative. What lender would ever agree to loan a homeowner in California money to buy a home, if it’s quite likely that the loan amount could be reduced through no fault of their own? What interest rate do you suppose a lender would have to charge to make up for the potential to have their assets reduced in value by a third party? With the ability to foreclose taken away, why would any home owner pay any of their loan back? This is so stuck on stupid, that it just might pass.
Beware the tyranny of the majority.