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.

Rep. Laura Richardson (D-Long Beach) of Sacramento, Calif., defaulted on her mortgage payments and her South Bay home was sold in a recent foreclosure auction, according to the Daily Breeze.

It’s actually the third property of hers to fall behind on bank payments — Richardson is also in jeopardy of losing real estate in Long Beach and San Pedro. She seems to have saved the Long Beach home from foreclosure; however the San Pedro residence is eight months past due and an auction date is already scheduled.

In addition to the various mortgage defaults, Richardson also failed to make almost $9,000 in payments for real estate taxes.

Here’s what she had to say about the mess:

“I should have moved forward in an earlier fashion. I acknowledge that. I intend never to conduct business in that fashion again…. I have financial obligations, and I will fulfill those financial obligations. – There will be no debts to the state of California…. I am not financially wealthy. I am not a millionaire. – Based upon what I was going through, changing four jobs in less than one year, I think any American would understand what that does in terms of a person’s financial stability.”

According to the report, Richardson makes an annual salary of $169,300 as a member of Congress. And as a member of the Assembly, she earned about $116,000 in addition to a per diem for living expenses in Sacramento.

We just want to quickly remind our readers that our monthly real estate newsletter, “Investment Exchange” was just emailed out to those who have already signed up to receive it.

The May edition covers foreclosure investing riches — it was the final installment of a two-part series that went back to April 2008.

“Investment Exchange” is a FREE resource that Foreclosure.com provides its site visitors. Sign up to receive the educational real estate newsletter each month at no cost right here.

To check the May 2008 installment and all of the others click here.

Learn how to sell homes fast even in down markets with expert marketing tips and strategies from Foreclosure.com Founder, President and CEO, Brad Geisen, during this FREE 60-minute online training presentation.

The educational workshop dubbed “Foreclosure Marketing Tools” will begin on Tuesday, April 8, 2008, at 4 p.m. ET.

Brad will teach you how to:

• Sell terms and financing — not sale prices
• Coordinate open houses that receive multiple offers
• Write newspaper/Internet ads that generate leads
• Market on the Internet to millions for peanuts
• Use neighbors to help you find motivated buyers

It doesn’t matter if the real estate market is up or down because Brad combines the right mix of old and new marketing strategies that are successful under all circumstances.

It’s a money-making approach that Brad has dedicated the past 20 years of his career honing and perfecting. Now it’s time for him to reveal to you the effective foreclosure marketing programs that helped him become a self-made millionaire.

And it’s all FREE!

Sell, sell and sell more homes right now for remarkable profits regardless of current market conditions with  information contained in the “Foreclosure Marketing Tools” course. To register now CLICK HERE.

Webinars are LIVE  educational sessions that let participants see, hear and interact with real estate experts right from their personal computer screens. In fact, Webinars are driven in part by visitor feedback and questions that are posed during the sessions. For more information and course offerings click here.

A United States Senate ad hoc committee — headed by Senators Christopher Dodd (D-CT) and Richard Shelby (R-AL) — are currently spearheading a bi-partisan housing rescue bill that could include a $7,000 one-year tax credit for purchasers of foreclosed homes if the legislation is passed.

In addition, the federal government would earmark $4 billion in grants to allow local governments to buy and refurbish foreclosed properties for resale or for use as “low-income” rentals. And the bill includes $10 billion for local housing agencies to refinance subprime loans and provide new mortgages for first-time homebuyers.

That’s not all.

According to MortgageNewsDaily.com, $100 million more will be allocated to expand counseling for homeowners at risk of defaulting on their loans.

This is good news for the thousands of homeowners nationwide struggling to make ends meet and who are desperate for some sort of relief. The bill would also encourage buyers to purchase Real Estate Owned (REO) properties, helping lenders and other financial institutions get them off their books faster.

And more important, it gives you more of a reason to purchase foreclosed properties (not like you needed another one) with a huge tax break on top of already discounted homes.

So what are you waiting for? Start your foreclosure search today RIGHT HERE and be one of the first to take advantage of this great news!