[Flynn’s Editorial: Joe Biden and ALL Democrats should share in the blame for the foreclosure crisis. If only the government does not allow business to accept mortgages from people who CANNOT afford to buy into the housing market. The concept is simply like shooting one’s foot!]
Should Biden Share Blame for Foreclosure Crisis?
Experts: Many Americans Lost Homes Due to a Bill Championed by Biden
By JUSTIN ROOD
August 28, 2008
Snippet from external source: (visit the link for the full article)
Congressional Republicans drove the effort to pass the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) of 2005. But Biden – who has enjoyed hundreds of thousands of dollars in campaign donations from credit industry executives – endorsed the measure early on and worked to gather Democratic support for it.
Over the past two years, sub-prime mortgage borrowing and a weakening economy have pushed increasing numbers of Americans into dire financial straits. Under the old rules, many could have declared bankruptcy, shed much of their debt, restructured their mortgages and held onto their homes, according to experts and the two reports.
But the 2005 law Biden championed made it more expensive and more difficult to declare bankruptcy, experts conclude. That forced hundreds of thousands of distressed homeowners to sell their homes, or default on their mortgages, after which the bank would sell their former home, according to the studies. That flood of homes going up for sale in an already-weakening market further depressed home prices, according to the two reports, snowballing into the current crisis.
