For Immediate Release: Contact: Amber Bacavis at 317 504 0204
August 12, 2008 or e-mail her at amber@johnbarnes.us
John Barnes Calls for Plan to Curb Foreclosure Crisis in Indiana
Proposals will help struggling families from losing their homes
Indianapolis, IN - John Barnes, candidate for State Representative in Indiana House District 89, announced his plan today to help stem the tide of foreclosures that has forced thousands of Hoosier families from their homes and driven property values down. The announcement comes as state officials revoked the licenses of 360 mortgage lenders for failing to comply with a 2007 state law designed to increase safeguards and help prevent foreclosures.
For the past decade, Indiana has ranked above the national average in mortgage foreclosures. A recent study by the Center for Responsible Lending projected that over 48,000 homes in Indiana will be foreclosed this year alone.
"It is unacceptable to stand by and watch as our neighbors lose their homes," Barnes said. "High gas prices, rising healthcare costs, and record job losses have pushed Hoosiers to the brink, making it increasingly difficult to keep up with their mortgage payments. Entire sections of our communities are being boarded up and left for auction at sheriff's sales. We need to do better for our homeowners."
Barnes believes any solution will require a strong partnership between mortgage lenders, homeowners, and state government and the full cooperation of all facets of the industry. His plan is comprised of three legislative proposals, outlined below.
1. Banning pre-payment penalties on all subprime loans. Ten states ban such penalties.
"Struggling homeowners who seek to refinance should not be punished for trying to make ends meet," Barnes continued. "If we put an end to prepayment penalties on subprime loans, individuals trying to make their loans more payable will be more likely to keep their homes."
2. Requiring lenders to include taxes and insurance in subprime mortgage payments, as well as review whether borrowers can repay their loans
"By requiring lenders to include taxes and insurance, potential homeowners can avoid being seduced by deceptively low payments," Barnes said. "Additionally, it is important to require lenders to review borrowers to ensure they will be able to repay their loans."
3. Reviewing the Housing Rescue and Foreclosure Prevention Act recently passed by Congress and consolidating current state programs designed to prevent mortgage foreclosure
"We should examine the impact that the Housing Rescue and Foreclosure Prevention Act will have on the mortgage crisis," Barnes added. "After reviewing its effectiveness, the state can then fill in any remaining gaps." This legislation created a rescue fund to help those who are already in foreclosure keep their homes.
Barnes believes that by examining the state's mortgage foreclosure prevention programs, we can expose any overlapping efforts to prevent foreclosures. He supports efforts to consolidate these programs under one agency in order to strengthen Indiana's ability to fight mortgage fraud, predatory lending, and better help struggling families.
"While home foreclosures have hit the Eastside particularly hard, all of Indiana would benefit by addressing this problem," Barnes asserted. "Our state needs to step up its efforts to reduce the numbers of these foreclosures. If elected, I will aggressively seek to pass these proposals to shield homeowners from foreclosure and protect our communities from decreasing home values."
Barnes has started his door-to-door campaign early and has reached out to citizens throughout the district to give residents a chance to voice their concerns about the issues important to them.
"One of the biggest concerns on the minds of everyone is foreclosure," Barnes said. "People left in effected neighborhoods are seeing the values of their homes fall, due to these vacancies. Something must be done."
According to the Center for Responsible Lending, Indiana homes have seen their property values drop by nearly $1 billion due to foreclosure. The average Indiana home has lost $1,760.
John Barnes is the Democratic Candidate for State Representative in House District 89.
District 89 is located on the east and southeast sides of Marion County and includes parts of Warren, Perry and Franklin Townships. The community of Irvington and part of the City of Beech Grove are included in the district. Barnes is a lifelong eastsider and has been a public school teacher for the Metropolitan School District of Warren Township for 25 years. He lives in southern Warren Township with his wife Leslie and their two children.
August 12, 2008 or e-mail her at amber@johnbarnes.us
John Barnes Calls for Plan to Curb Foreclosure Crisis in Indiana
Proposals will help struggling families from losing their homes
Indianapolis, IN - John Barnes, candidate for State Representative in Indiana House District 89, announced his plan today to help stem the tide of foreclosures that has forced thousands of Hoosier families from their homes and driven property values down. The announcement comes as state officials revoked the licenses of 360 mortgage lenders for failing to comply with a 2007 state law designed to increase safeguards and help prevent foreclosures.
For the past decade, Indiana has ranked above the national average in mortgage foreclosures. A recent study by the Center for Responsible Lending projected that over 48,000 homes in Indiana will be foreclosed this year alone.
"It is unacceptable to stand by and watch as our neighbors lose their homes," Barnes said. "High gas prices, rising healthcare costs, and record job losses have pushed Hoosiers to the brink, making it increasingly difficult to keep up with their mortgage payments. Entire sections of our communities are being boarded up and left for auction at sheriff's sales. We need to do better for our homeowners."
Barnes believes any solution will require a strong partnership between mortgage lenders, homeowners, and state government and the full cooperation of all facets of the industry. His plan is comprised of three legislative proposals, outlined below.
1. Banning pre-payment penalties on all subprime loans. Ten states ban such penalties.
"Struggling homeowners who seek to refinance should not be punished for trying to make ends meet," Barnes continued. "If we put an end to prepayment penalties on subprime loans, individuals trying to make their loans more payable will be more likely to keep their homes."
2. Requiring lenders to include taxes and insurance in subprime mortgage payments, as well as review whether borrowers can repay their loans
"By requiring lenders to include taxes and insurance, potential homeowners can avoid being seduced by deceptively low payments," Barnes said. "Additionally, it is important to require lenders to review borrowers to ensure they will be able to repay their loans."
3. Reviewing the Housing Rescue and Foreclosure Prevention Act recently passed by Congress and consolidating current state programs designed to prevent mortgage foreclosure
"We should examine the impact that the Housing Rescue and Foreclosure Prevention Act will have on the mortgage crisis," Barnes added. "After reviewing its effectiveness, the state can then fill in any remaining gaps." This legislation created a rescue fund to help those who are already in foreclosure keep their homes.
Barnes believes that by examining the state's mortgage foreclosure prevention programs, we can expose any overlapping efforts to prevent foreclosures. He supports efforts to consolidate these programs under one agency in order to strengthen Indiana's ability to fight mortgage fraud, predatory lending, and better help struggling families.
"While home foreclosures have hit the Eastside particularly hard, all of Indiana would benefit by addressing this problem," Barnes asserted. "Our state needs to step up its efforts to reduce the numbers of these foreclosures. If elected, I will aggressively seek to pass these proposals to shield homeowners from foreclosure and protect our communities from decreasing home values."
Barnes has started his door-to-door campaign early and has reached out to citizens throughout the district to give residents a chance to voice their concerns about the issues important to them.
"One of the biggest concerns on the minds of everyone is foreclosure," Barnes said. "People left in effected neighborhoods are seeing the values of their homes fall, due to these vacancies. Something must be done."
According to the Center for Responsible Lending, Indiana homes have seen their property values drop by nearly $1 billion due to foreclosure. The average Indiana home has lost $1,760.
John Barnes is the Democratic Candidate for State Representative in House District 89.
District 89 is located on the east and southeast sides of Marion County and includes parts of Warren, Perry and Franklin Townships. The community of Irvington and part of the City of Beech Grove are included in the district. Barnes is a lifelong eastsider and has been a public school teacher for the Metropolitan School District of Warren Township for 25 years. He lives in southern Warren Township with his wife Leslie and their two children.
