What Government Is Doing To Stop Foreclosure

The increase in foreclosure rates across the country has caused millions to turn to their government for some sort of aid.





In some cases people want a bailout, while others simply want laws changed. It appears to be working, too, with the number of bills introduced to the Senate and House since the start of 2009 increasing nearly as fast as the foreclosure rate. Of course there's no telling when these bills will be passed, if at all, but it is promising to see representatives using their voice to speak for your needs.





Although the Housing and Economic Recovery Act of 2008 arguably was the most famous foreclosure bill, it is clear its purpose was two-fold. First and foremost, the bill was needed to provide assistance to homeowners and lenders struggling with this issue.





Not only did the bill, which was signed by President George Bush on July 30, provide loan limitations for lenders, it established the Home Ownership Preservation Entity Fund to fund the HOPE for Homeowners Program.





This program insures up to $300 billion for 30-year refinanced loans for distressed borrowers over the next few years. The bill also drew attention to the growing need for aid for the millions of homeowners at risk.





One of the bills recently introduced both to the House and the Senate is the Systematic Foreclosure Prevention and Mortgage Modification Act. The heart of this bill calls for the Federal Deposit Insurance Corporation chairperson to pay up to $1,000 to help cover the expenses of a loan modification as well as splitting the loss should a modified loan re-default.





A bill introduced in 2009 geared more toward helping the homeowner is the Foreclosure Rescue Fraud Act of 2009. This bill limits the power a foreclosure consultant has during a case. Homeowners also would be permitted to cancel their contract with a consultant without penalty.





There is a bill closer to a vote; the Housing Assistance Tax Act of 2008. If passed, this would increase the amount of low-income housing credits allocated to each state, as well as modifying the rules of low-income housing tax credits.





The bill also would increase the percentage of property used for leasing without affecting the rehabilitation tax credit. There also is an amendment aiding single family homeowners. Although these bills may never become laws, it is a start to reforming foreclosure for the millions across the country where this is a reality.

Anthony Dean has helped many home owners with the loan modification process. See how he can help with your loss mitigation here.www.WeSaveHomes.com

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