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Home | News Briefs | U.S. | World | Celeb Buzz | Entertainment | Sports | Business | Health | Sci / Tech | Politics | Weird & Offbeat Study: Community Service To Repay Part Of Mortgage Loan Forgiveness To Avoid Foreclosure Might Work April 28, 2009 8:42 a.m. EST Linda Young - AHN Editor Urbana, IL (AHN) - Struggling homeowners needing help to avoid foreclosure could repay part of their loan forgiveness by performing community service, a new study suggests. Banks across the country hold millions of dollars in mortgages that many individuals can't pay, and which, in many cases, are in danger of being foreclosed on. In addition, many homeowners have seen the value of their properties drop leaving them owing more than their home is worth. University of Illinois professor Michael LeRoy, a law and labor and employment relations expert, said his study rose from rose from inequities in government programs. He thought that the mortgage-relief plan wasn't as tough as the terms imposed by other government programs such as corporate bailouts that cap executive pay and welfare programs that require recipients to either hold jobs or perform community service work. LeRoy says the approximately 9 million homeowners who are eligible to have their mortgages cut could be required to repay at least part of the government aid through public service work. His case law research in the study showed that the U.S. has a long history of mandating public service in exchange for government assistance that has usually withstood legal challenges that such service violated constitutional protection against involuntary servitude, LeRoy said. "As government debt-relief programs continue to evolve, a public service requirement is a viable legal option that policymakers should consider," LeRoy said in a statement. "As the U.S. has funded bailouts for once-rich corporations or aid for the poor, it has required reciprocation in the form of sacrifice and additional effort by recipients," he said. "But this transfer of $50 billion to middle-class homeowners requires nothing more than filling out forms and meeting eligibility requirements." Copyright © 2003 - 2009 AHN - All rights reserved.Redistribution, republication. syndication, rewriting or broadcast is prohibited without the prior written consent of AHN.License AHN news for your website, business, digital signage network or publication. Home | News Briefs | U.S. | World | Entertainment | Sports | Business | Health | Sci / Tech | Politics | Weird / Offbeat © 2009 AHN Client Login | Submit News | Privacy Policy | Terms of Use | Contact | Content Services All Rights Reserved

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