‹ Real estate agents foreclosures listings on Z57 •
The Foreclosure Prevention Act of 2008 today inched closer to becoming a reality when the U.S. Senate agreed with a majority vote (84-12) to move forward with the legislation that could free hundreds of thousands of distressed homeowners from the clutches of foreclosure.
The bill (H.R. 3221) will now move to a House-Senate conference committee to resolve differences between the two chambers and possibly face several potential amendments.
It’s legislation that is designed to alleviate the wave of failing loans nationwide and help bolster a real estate market that has been in a nose dive for months.
Here is a rundown of the bill’s benefits courtesy of Senator Lamar Alexander (R-Tenn.) who voted in its favor:
- A refundable tax credit of up to $8,000 for first-time homebuyers.
- Establishes a new, temporary FHA program (HOPE for Homeowners) to help homeowners who are at risk of losing their homes to refinance their mortgages, if their lenders voluntarily agree to participate in the program.
- The program will be paid for using fees paid by Fannie Mae and Freddie Mac –- not taxpayer dollars.
- Only certain owner-occupants would be eligible to refinance –- no investors or investor properties will qualify.
- Creates a tough, new regulator for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to reduce the possibility of an expensive taxpayer bailout someday.
- Sets minimum standards for mortgage brokers and strengthens the “Truth in Lending Act” (to require better disclosure to borrowers before they sign a mortgage).
- Provides mortgage protections for servicemembers and veterans, such as lengthening the time a lender must wait before staring foreclosure proceedings from three months to nine months after a soldier returns from service.
- A standard property tax deduction for taxpayers who don’t itemize on their returns.
- More than $10 billion in additional bond authority that states could use to provide loans to first-time homebuyers or to finance the construction of affordable rental housing.
- An additional $150 million for foreclosure prevention counseling.
President George W. Bush has in the past threatened to veto the legislation if it makes it to his desk for signature, which is required for the Foreclosure Prevention Act to become law.
However, this is an election year and there is pressure on him and his supporters to allay some housing-related fear among the general public.
This bill could possibly do just that … and then some.
SEARCH FORECLOSURES |
|
 |
Search more than |
FREE 7-DAY TRIAL!
You're only seconds away from searching foreclosures FREE for 7 days with America's largest and most trusted database.
It's fast and easy!
7 comments
Comments feed for this article
Trackback link
http://blog.foreclosure.com/2008/07/foreclosure-prevention-act-clears-latest-hurdle-in-us-senate/trackback/
July 30, 2008 at 10:23 am
Pingback from Foreclosure relief and housing bill gets approval from President Bush · Foreclosure.com Blog
July 16, 2008 at 4:42 pm
Foreclosure Doctor
Good to see that progress is being made and that the government is addressing this issue. The situation needs to corrected soon before matters worsen beyond repair. The Foreclosure Prevention Act seems to be a worthy solution to our country’s problems.
July 30, 2008 at 12:10 pm
erin
Wow this is great! I am going to go ahead and buy a house I can not afford now! I know the American taxpayer and government will be there to bail me out so why bother to live within my means!
What a joy day!
July 30, 2008 at 8:18 pm
Maria of Tx
I have a subprime loan due to my suboptimal credit. I have been paying mortgage with a very high rates. I have been able to pay my mortgage but it is really high bec. of the interest. Everytime I try to refinance, lenders always use my credit score against me. Now, this new law seems a hope for people like us. But one of the article mentioned that this program is only for the people with good credit.
So how can this help people like us with subprime loans. The reason we have subprime loan is because of poor credit. Is there any hope? Or this new law can really be a help for us?
August 11, 2008 at 5:45 pm
christine
“Creates a tough, new regulator for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks to reduce the possibility of an expensive taxpayer bailout someday.”
right- they will bail them out
August 15, 2008 at 1:58 am
Len
This law is useless. The reason people are foreclosing is because they have sub-prime adjustable mortgages and wallstreet decided to stop buying these things last year. When that happened, all the sub-prime lenders went out of business. So, the holders of these loans are stuck and can’t refinance before their payments adjust upward. That’s the problem. There’s nothing there for them. The only law these rediculous politicians could pass that would help is to either A) create a new mortgage insurance fund - so wall street will feel secure in buying the securities, or B) Offer a government backed mortgage bond that would take the place of wallstreet. THAT’S IT!! There are no other possibilities. Hang this on your wall and in 2 years when none of this has happened, and your house is worth 1/2 of what you paid for it because of the foreclosure crisis that these idiot polititians did nothing about, you will be reminded that you read something predicting the situatuion and hopefully vote in new leadership.
August 17, 2008 at 11:52 am
Irene
Not all of us are in dire need because of the prime loan mess, but rather due to loss of jobs or medical conditions.
Life happens and most lenders are not trying to help out. For example, BENEFICIAL would rather have the homeowner lose their house than to assist in reducing their payment by a mere $200.00 a month.
The economy is bad and though some individuals did get in over their heads, some of us were hit plainly with life circumstances.
BENEFICIAL is heartless!!