Minneapolis city council calls for foreclosure freeze
The Minneapolis City Council Friday, passed a resolution calling for a temporary and voluntary freeze on foreclosures all across the city.
When Taalibah As-Siddiq bought her first home, she couldn't have imagined that three years later she may have to move out.
"If not for me being a person with faith in God, it would be hopeless to me," says Taalibah.
After several financial set-backs, Taalibah fell behind on her mortgage payments. Last fall, the bank foreclosed on her house.
There are three other homes on the same block that are already empty because of foreclosure. And across north Minneapolis alone, there were 1500 homes foreclosed last year.
"It's like losing totally everything," says Taalibah.
Minneapolis homeowners caught in the mortgage crisis are now turning to the city for help.
Council members Friday passed a resolution, asking sub-prime lenders to freeze foreclosures in Minneapolis for 90-days and work with homeowners to modify their mortgages.
"It begins with a conversation and we have to get these banks to tell us what are they going to do with all these properties," says Minneapolis City Council member Gary Schiff.
But the resolution is voluntary. Opponents call it well-intentioned, but lacking teeth.
"I think that one of the things we should guard against is making meaningless gestures," says Minneapolis City Council member Paul Ostrow.
While supporters acknowledge the city council can't tell financial institutions how to do business, they hope the resolution at least sends a message that foreclosures are not in anyone's interest and buys homeowners, like Taalibah As-Siddiq, some time to re-finance their mortgages and keep their homes.
"I want to take care of my obligations," says Taalibah. "I'm not a person that just is not going to pay my mortgage. I just need time to get caught up and get things so I can move forward.
In addition to the voluntary foreclosure freeze - with concerns about crime and property values - the city also wants banks to explain what they're going to do with all the boarded up homes.
The city is also considering legal action against certain lenders.
Council member Gary Schiff says at least one other city has filed suit claiming lenders caused property values to go down - because of deceptive loan practices.
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