Foreclosure Relief Measures

April 14th, 2008

Overriding the objections raised by President Bush the Senate has passed a bill that has been co-sponsored by Senator Jay Rockefeller. The bill targets help to West Virginians as well as veterans from the jaws of foreclosure so that they are not thrown out of the houses that are their homes. It also focuses on the rebuilding of localities that are dotted with vacant foreclosed units. On Thursday 10th April the Foreclosure Prevention Act was passed by a vote of 84/12.

Rockefeller (D-West Virginia) commented that this bill will bring ‘peace of mind’ to West Virginian families struggling each month to keep the roof above their heads from being blown off by the foreclosure tornado. Although the nation is being sucked in by an unprecedented housing crisis it should not be allowed to gain the upper hand and turn the American dream of owning a house into a nightmare triggered by rising interest rates coupled with falling real estate market.

The Foreclosure Prevention Act will provide extra funds to accommodate additional housing counselors. New options are on the cards to help house owners to refinance their sub-prime ARM loans and more time will be given to veterans to enable them to become current on their monthly payments. They will be allowed a year to sort out the problem.

President Bush had objected to the clause in the bill that would allot billions to Community Development Block Grants. By making use of this money the state and local administration would be able to buy the foreclosed houses, repair them and then resell them. The reduction in the number of vacant units will help to check the falling prices of adjacent properties that are not touched by foreclosure. Bush however was all praise for the Federal Reserve deciding to spend $30 billion, despite the recession conditions, to prop up Wall Street business interests. Rockefeller chipped in that in the long run it will be the tax payers who will be shouldering the extra burden. He was critical of Bush for not giving priority to decaying localities, falling real estate market and needs of the veterans.

The bill has also taken steps to prevent a rerun of the present foreclosure crisis by insisting on compulsory disclosure of information related to mortgages by the companies and or banks. This will allow the people to decide on the course to be taken knowingly. Important tax relief has been given to the housing market especially to those hard hit by the bursting of the housing bubble.