Missouri attorney general decides against temporary moratorium on foreclosures
3:46 PM, Oct 11, 2010
12:25 PM, Oct 12, 2010
KANSAS CITY, Missouri - On Monday, Mayor Mark Funkhouser asked Missouri Attorney General
Chris Koster to implement a temporary moratorium on
Koster said it would be premature to put a moratorium into place
until all the facts are reviewed. A multi state working group made
up of several attornies general are conducting an investigation
into possible flawed foreclosure procedures. Koster's office said
it would put a short term halt on foreclosures if, in fact, it is
determined there was wrongdoing.
Kansas City Missouri homeowners have been among the hardest hit
during the economic downturn.
Thousands of families in Kansas City are facing foreclosures.
The city was one of the worst hit in the state because realtors say
the city has an abundance of low income housing.
Kansas City has about 10,000 homes that sit vacant right now -
many of them are empty because of foreclosures.
Funkhouser, along with a community advocacy group Communities
Creating Opportunity (CCO), asked Missouri's Attorney General Chris
Koster, to put a temporary moratorium on foreclosures as a way to
keep families in their homes.
This comes as four banks announced they would stop foreclosures
in many states after some concern those banks used flawed
The problem is that the call to stop the foreclosure process
doesn't apply in Missouri for most of those banks so foreclosures
for the most part will continue unless the attorney general steps
Dozens of other attorneys general have vowed to do so.
Funkhouser said Monday, "The markets are regulated for a reason
and we just need to pause and have the A.G. take a look and give us
While it may sound great to struggling homeowners to get tough
with banks, some real estate experts say a blanket halt could
further depress future home prices and store up an inventory still
likely to face foreclosure.
It's too early to tell if any Missouri homeowners have been
victims of fraudulent practices but the CCO said foreclosures are a
major problem for the Show Me state. CCO said one in 652 Missouri
homeowners face foreclosure.
The banks short term freeze on foreclosures is already in effect
in Kansas. Kansas, unlike Missouri, requires a judicial process
before a foreclosure is finalized.