Congress acts on forclosure bill

Thursday the House passed a foreclosure prevention package which will face a vote by the Senate and still can be vetoed by the President.  If all goes as planned which it rarly does the President should have the bill on his desk by early July.

Lawmakers approved the proposal 266 to 154 voting in favor of the bill that will be looked to help many homeowners facing foreclosure.  “No borrower who goes through this process will say at the end of it, ‘Boy, that was fun. Where do I buy a ticket to get back on Space Mountain?” said House Financial Services Chairman Barney Frank, D-Mass sponsor of the foreclosure bill.

Lenders will have to cut the debt to no more then 85% of the current appraised value.  If homeowners can not afford the payments at the new mortgage amount they will not qualify.  Participation in the program would be voluntary for lenders so critics say lenders would get rid of the riskiest of loans backed by the program.

Opponents of the bill say it’s a bail out for homeowners that got in over their heads and also helping lenders and investors out of their risky investments.  It’s true this bill would help homeowners out of a foreclosure but it will also save communities and neighborhoods that are still seeing decreasing values because of the struggling housing market.  As a country we could let homeowners and lenders figure this out on their own but if they go down they will be taking the rest of us with them.  

  1. the banks knew that they were taking advantage of americans that was trying to by a home i took my life savings of 39,000 put down on my home and at the closing they rushed me threw the documents. found out morg was going up in two years from7.50pre, to 10.50pr. then later was going up to 14.50pr. i was not told that it was going up that amount never would have bought the home this has cause my credit to fall very low called the bank they told me i should have read the find print maybe so if they would have gave me a chance. i was never given a chance this bank has made my life a living hell. but i guess we all live an learn. and i do have god on my side.this bank was option one mortage change name to AHMSI mortage i started at 1200 hundred a month to around 1800 a month . i was never told any of this at the closing please help. i really beleave that the bank should some how help us get out of this mess and help us out keep our homes i am currently four months behind. please please help.

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