Fed Economist, Boston Housing Advisor: Time Has Come To Re-Think Foreclosure Timing

Originally published in the Banker & Tradesman

February 29, 2012
Cory S. Hopkins (Reporter, Banker & Tradesman)

It is said that time heals all wounds. But when it comes to the foreclosure system, adding time to the process isn't helping - it's only drawing out the pain.
According to Sheila Dillon, housing advisor to Boston Mayor Thomas Menino, giving borrowers and lenders more time to arrange an alternative to foreclosure - including mandated 90- or 150-day right-to-cure periods - is largely ineffective. Absent any guiding principles or required mediation, Dillon said, too often lenders simply wait out the period without engaging borrowers.
Dillon spoke last night at an event sponsored by the Harvard Kennedy School's Rappaport Institute for Greater Boston. She was joined by Federal Reserve Bank of Boston Senior Economist Paul Willen.