White House rejects foreclosure moratorium

Oct. 12, 2010 at 5:25 PM
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WASHINGTON, Oct. 12 (UPI) -- The White House says it does not support a nationwide moratorium on home foreclosures because of possible unintended consequences.

"If there's an empty house in the neighborhood that somebody has a contract on and they're closing date is next week and there is a moratorium ... that sale doesn't happen. That recovery doesn't take place," press secretary Robert Gibbs said.

"Certain banks have identified process -- parts in their process that are insufficient. We should certainly get to the bottom of that without doing broader harm to the housing market and threatening the recovery in housing."

Gibbs said the current foreclosure controversy wasn't a distraction to the Obama administration's participation in re-election campaigns for Democratic candidates because they've been dealing with the housing crisis every day.

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