Senate Vows to Speed Up Passage of Foreclosure Prevention Act

by Peter Vernon on General

The Senate Foreclosure Prevention Bill that has been stalled due to arguments over provisions between Republicans and Democrats lately finally looks as though it is primed to move forward and be passed. Many are remarking that the longer the Senate stalled, the more pressure they came under to do something about the foreclosure situation. Now the two sides are working to put partisan politics aside and focus on aiding homeowners in foreclosure.

Changes to the bill include the exclusion of a controversial policy which would have allowed bankruptcy judges to waive portions of debts or modify mortgages for certain borrowers. As a compromise, the bill is expected to include a provision allowing state and local governments to issue up to 10$ million in tax exempt bonds to homeowners in order to help them refinance dangerous sub prime loans. A certain amount will also be allotted to go towards raising foreclosure awareness and helping foreclosure rescue and counseling groups to expand their services.

The crux of the issue seems to have been wanting on the one hand to assist homeowners caught in bad loans, but not to “bail out” investors who took irresponsible gambles that didn’t pay off once the housing market collapsed.

After a two week recess, the Senate had returned and pledged to pass the bill as quickly as possible, so we could see the Foreclosure Prevention Act coming into effect by the early next week.