Foreclosure Bill Passed in Senate

On Capitol Hill yesterday, the Senate approved a measure that would help both businesses and homeowners weather the current housing crisis.

Passed by an impressive 84-12 vote, the package doesn’t do enough to help homeowners who face mortgage payments they can’t afford, some supporters say. The measure faces an uphill battle in the House.

"This is just the beginning of the process," said Senate Majority Leader Harry Reid, D-Nev., "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."

As it stands now, the package offers huge tax breaks for homebuilders, a $7,000 tax credit to those buying foreclosed properties, and $4 billion in grants for communities to buy and fix up abandoned homes.

Although The White House has opposed the plan, it has not threatened to veto the measure. Sources say portions of the legislation could add to the housing crisis by depressing some home values.

A House bill drafted by Financial Services Committee Chairman Rep. Barney Frank, D-Mass., has the FHA stepping in to back $300 billion in refinanced loans for 1 million or more homeowners who otherwise might face foreclosure.

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