The Bill That Will Solve the Foreclosure Crisis

A few weeks from now, we may see a decline in the number of foreclosed homes in our neighborhoods, along with that, a decrease of people living in shelters, cars, and streets.

The Senate just recently cleared the Foreclosure Prevention Act of 2008. This is the much-awaited answer to the country’s worsening housing crisis. It will, for two things, modernize the Federal Housing Administration and create a new regulator for Fannie Mae and Freddie Mac. The act will also redevelop abandoned and foreclosed homes through funds given to state and local governments that will amount to up to $4 billion.

The bill also includes other housing assistance measures like:

• Lessened down payment requirement at 3.5 %
• Up to $8,000 refundable tax credit for first-time homebuyers
• A fortified "Truth in Lending Act" (TILA), where lenders are required to disclose information like changes in payments based on rate adjustments to borrowers
• Protection for servicemen against foreclosure
• More than $10 billion to fund loans for first-time homebuyers and construction of inexpensive rental housing
• An additional $150 million for foreclosure prevention counseling
• Creation of a temporary FHA program that will allow homeowners to refinance their mortgages when they become at risk of foreclosure
• Increase in FHA loan limits to 110% of the local median home price

Homeowners will no longer have to be afraid of foreclosure. As soon as this bill is approved and signed by the president, we won’t have to worry too much about losing our homes.

Housing Assistance Network - is a site that aims to help those who are in the low to moderate income brackets find financial assistance for housing, help in acquiring a new home, or grant programs from both state and non-government institutions.