Contact: John Hartgen
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(703) 739-0800
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href='mailto:jhartgen@abiworld.org'>
color='#0000ff' size='3'>jhartgen@abiworld.org
FEDERAL
BAILOUT LEGISLATION WILL NOT HELP FORECLOSURE CRISIS, ACCORDING TO
LATEST ABI QUICK POLL
size='3'>October 23, 2008, Alexandria, Va.
size='3'>— A overwhelming majority of respondents (75 percent) in
a recent ABI Quick Poll believe that the recently enacted federal
bailout package will not be effective in reducing the number of
foreclosures. Responding to the statement, “The Federal bailout
legislation will be effective in reducing the number of foreclosures to
deserving borrowers,” 51 percent of respondents “strongly
disagreed” and 24 percent “somewhat disagreed.”
Fifteen percent of
respondents did think that the federal bailout legislation would be
effective in reducing the number of foreclosures
size='3'>. Six percent “strongly
agreed” and 9 percent “agreed somewhat” that the
bailout package would be effective in slowing the number of
foreclosures. Seven percent of respondents did not know or had no
opinion on the issue.
On Oct. 3, President Bush
signed the “Emergency Economic Stabilization Act” to
authorize the U.S. Treasury Secretary to spend up to $700 billion to
purchase distressed assets, especially mortgage-backed securities, from
the nation's banks. The measure was in response to the recent credit
crisis and economic turmoil that threatened the stability of the U.S.
financial system.
While the financial bailout
package encourages loan modifications for distressed mortgages, it does
not require lenders to modify home loans in exchange for taxpayer
dollars. An estimated 3.2 million homes will be lost to foreclosure this
year and next, according to published reports.
ABI’s Quick Poll is
posted on ABI’s home page,
href='http://www.abiworld.org/'>
size='3'>www.abiworld.org
size='3'>. ABI members and the public are invited to respond to a
question on a timely bankruptcy or insolvency issue. Visit
href='http://www.abiworld.net/quickpoll/'>
color='#0000ff' size='3'>http://www.abiworld.net/quickpoll/
to access the results of previous
ABI Quick Polls.
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ABI is the largest
multi-disciplinary, nonpartisan organization dedicated to research and
education on matters related to insolvency. ABI was founded in 1982 to
provide Congress and the public with unbiased analysis of bankruptcy
issues. The ABI membership includes nearly 11,700 attorneys,
accountants, bankers, judges, professors, lenders, turnaround
specialists and other bankruptcy professionals, providing a forum for
the exchange of ideas and information. For additional information on
ABI, visit www.abiworld.org. For additional conference information,
visit
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face='Times New Roman' size='3'>.