09 LC 35
1517
Senate
Resolution 759
By:
Senators Buckner of the 44th, Jones of the 10th, Seay of the 34th, Butler of the
55th, Tate of the 38th and others
A
RESOLUTION
Requesting
mortgage lending institutions to adopt rent-to-own programs to help to eliminate
unnecessary home mortgage foreclosures; and for other purposes.
WHEREAS,
in 2009, more than 2.3 million American homeowners will face foreclosure
proceedings, and the numbers continue to increase, with homeowners with subprime
mortgages most at risk; and
WHEREAS,
an estimated 36,753 Georgia families will lose their homes to foreclosure
in
2008 and 2009; and
2008 and 2009; and
WHEREAS,
45 million homes, with 630,000 in Georgia, are projected to lose
collectively
$223 billion, and nearly $2 billion in Georgia, in 2008 and 2009 solely due to declining home
values caused by foreclosures on subprime loans of nearby homes; and
$223 billion, and nearly $2 billion in Georgia, in 2008 and 2009 solely due to declining home
values caused by foreclosures on subprime loans of nearby homes; and
WHEREAS,
the estimated loss in property taxes due to this loss in property values for
the
state and local governments in Georgia will exceed $14.5 million, and the presence of vacant foreclosed homes has been demonstrated to lead to increased neighborhood crime rates; and
state and local governments in Georgia will exceed $14.5 million, and the presence of vacant foreclosed homes has been demonstrated to lead to increased neighborhood crime rates; and
WHEREAS,
foreclosure prevention programs created to provide immediate relief to at-risk
homeowners can have a significant impact on reducing foreclosure rates, and a
substantial number of these subprime mortgage loans will not qualify for loan
modification programs currently proposed by federal agencies and mortgage loan
servicers; and
WHEREAS,
lending institutions may adopt and implement rent-to-own modified mortgages that
allow individuals that would otherwise be facing foreclosure to pay a lower
"rent" rate on a temporary basis until they are able to make full house payments
again, thereby avoiding foreclosure; and
WHEREAS,
providing homeowners flexibility to meet their financial obligations will help
to rebuild the economy and benefit lending institutions and consumers alike;
and
WHEREAS,
without a collective solution, such as the rent-to-own program, millions of
American families will be forced into mortgage foreclosure, further retarding
the growth of our national and state economies during this recessionary
period.
NOW,
THEREFORE, BE IT RESOLVED BY THE SENATE that the members of this body request
that mortgage lending institutions that provide home loans develop a rent-to-own
program to allow those individuals that would otherwise be facing foreclosure to
pay a lower rent rate until they gain the ability to make their full mortgage
payment again.
BE
IT FURTHER RESOLVED that such a financial institution should create and adopt
specialized procedures, policies, and programs to support its mission to help
bridge subprime consumers back to the financial mainstream.
BE
IT FURTHER RESOLVED that the Secretary of the Senate is authorized and directed
to transmit appropriate copies of this resolution to the Georgia Bankers
Association and the Community Bankers Association of Georgia.