Barbara Novick, vice chairwoman of BlackRock, argues that a nationwide moratorium on foreclosures will not resolve the underlying issue and would ultimately do more harm than good. Ms. Novick explains how the real issue is that many homeowners are unable to make their mortgage payments. Delaying the foreclosure process will prevent struggling homeowners from extricating themselves from such loans. "Worse, a national foreclosure moratorium will exacerbate the housing-market crisis by increasing uncertainty and preventing supply and demand from reaching equilibrium," Ms. Novick writes. She suggests bankruptcy reform as a way to resolve the foreclosure issue.
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