C.A.R. (California Association of Realtors) announced that they are opposing conference report AB 278, containing anti-foreclosure legislation sponsored by the state Attorney General. This legislation could be voted on as early as Monday, July 2nd. We agree with C.A.R., that if passed, the new legislation could slow down the housing recovery. While we believe the sponsors of the bill are clearly trying to help homeowners, the reality is that they have misdiagnosed the problem. Foreclosures are not the problem, the real issue is negative equity and the only thing stopping foreclosures will accomplish is a longer economic recovery, increased blight, fewer jobs, lower property tax receipts, and fewer opportunities for both new home buyers and investors.
