Senate Bill

On April 10, 2008, the U.S. Senate approved a measure that would help both homeowners and businesses during the current foreclosure crisis.

Some supporters of the package, which passed by an impressive 84-12 vote, say that it doesn’t do enough to help homeowners who have mortgage payments that they can’t afford. The measure faces an uphill battle in the House of Representatives.

Senate Majority Leader Harry Reid says, “This is just the beginning of the process. This bill will go to the House. With the house and the White House we can come up with a piece of legislation fairly quickly.”

Currently, the package offers enormous tax breaks for homebuilders, a $7,000 tax credit for those buying foreclosed properties, and $4 billion in grants for communities to buy and fix up abandoned properties.

The White House has not threatened to veto the plan although it has openly opposed the measure. Experts say that parts of the legislation may add to the housing crisis by depressing some home values.
Financial Services Committee Chairman Representative Barney Frank has drafted a House Bill that has the FHA stepping in to back $300 in refinanced loans for over 1 million homeowners facing foreclosure.