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.