Green Bay; Monday, Feburary 17, 2008
U.S. Sen. Herb Kohl today pushed aside confidence in his business acumen at a press conference on home foreclosure scams. Green Bay Mayor Jim Schmidt suggested that Kohl had the business sense to avoid becoming susceptible to such scams, while other needed increase financial literacy. Kohl expressed thanks for the compliment, adding, "But I own a basketball team", a reference to his ownership of the Milwaukee Bucks NBA franchise. The Bucks have been described as being "in a free fall" by the local newspaper [Milwaukee Journal-Sentinel, 2-14-2008]. Kohl said that everyone is potentially susceptible to scams.
The press conference had been called to highlight a bill in the U.S. Senate to penalize perpetrators of lease-back scams. The senator explained that in such scams home owners in default is conned into signing over their entire equity on a false promise of being able to keep their homes. State Senator Dave Hansen was also present to explain a similar bill in the state legislature. The proposed federal law would not pre-empt stricter state regulation.
The press conference was held at the offices of the Green Bay NeighborWorks organization. Noel Halverson, a NeighborWorks executive, said that Green Bay is currently ranked about 17th in the number of foreclosures. Statistics were not available on how the local forclosure experience translated into victimization by foreclosure scams. NeighborWorks provides homebuyer education which they believe reaches more than 25% of first-time homebuyers in the Green Bay area. They and other organizations also provide foreclosure counseling services which can help distressed owners from being victimized.
Steve Pamperin, a housing counselor with the Green Bay NeighborWorks, outlined steps a homeowner can follow to have the best chance of retaining their home. Pamperin also suggested that lenders seemed to need education as much as home buyers, so that they wouldn't approve the kind of loans which result in some of the recent increase in foreclosures.
One member of the audience, saying that he represented clients offering legitimate lease-back arrangements to distressed homeowners, suggested that the state might license qualified providers in addition to tightening restrictions against scams.
Sen. Kohl made a full political press before the formal presentation, greeting every person in the room and avowing that he is more impressive "as a myth than in person".