ATLANTA (Oct. 28, 2009) – State Sen. Vincent Fort (D-Atlanta) and members of the Atlanta Fighting Foreclosure Coalition received disappointing news that Wells Fargo/Wachovia’s foreclosure moratorium would not be extended beyond October. Sen. Fort and other supporters met with bank leaders today to discuss a possible extend of the moratorium for an additional six months, which was denied by Wells Fargo/Wachovia.
“I am disappointed in the outcome of today’s meeting,” said Sen. Fort. “If a moratorium was appropriate in October, it will continue to be appropriate in November, December and January.”
The Atlanta Fighting Foreclosure Coalition encouraged Wells Fargo/Wachovia to begin the moratorium in October. The moratorium pulled approximately 1,000 Atlanta foreclosure homes off the auction list. Wells Fargo/Wachovia then scheduled three days of educational workshops for affected home owners. Unfortunately Wells Fargo/Wachovia’s loan modification criteria did not consider the worst predatory lending abuse, which is lending without regard of the bower’s ability to pay. Research shows that if banks do not examine lending abuse practices during the loan modification process, the rate for defaulting is increased.
“Many of the homes on the foreclosure list are from predatory lending practices,” said Sen. Fort. “This is the main reason why Wells Fargo/Wachovia should re-examine their decision, and extend the moratorium another six months.”
Wachovia is currently owned by Wells Fargo and the corporation has received over $25 billion in taxpayer bail out money. The bank is also being sued by the city of Cleveland, OH, San Diego, Calif., the state of Illinois and by the NAACP for racial discrimination used in lending practices.
Sen. Vincent Fort represents the 39th Senate District which includes a portion of Fulton County. He may be reached at his office at the Capitol at 404.656.5091, by cell phone at 404.287.7116 or by e-mail at vincent.fort@senate.ga.gov.
PRESS RELEASE
For Immediate Release:
October 28, 2009
For Information Contact:
Jennifer Kitt, Press Office Coordinator
Jennifer.Kitt@senate.ga.gov
404.656.0028