After months of debate on the best way to address the current housing and foreclosure crisis in the United States, the Senate passed a housing stimulus package by a 84-12 vote earlier today.
Representing a compromise between the call for more government action from Democrats and the fear of a government bailout from Republicans, the housing stimulus package includes these notables:
- Providing $4 billion for cities to purchase and rehab foreclosed properties and an additional $13 billion in tax breaks to spur on home sales and home builders
- Changing language in the FHA's mortgage insurance program to permanently increase its loan limit to $550,000 and slightly increase its down-payment requirement to 3.5 percent
- Providing an additional $50 million for housing counseling, thus bringing the grand total for such efforts to $150 million
- Giving the Neighborhood Reinvestment Corp. $30 million to provide legal aid for at-risk homeowners
- Including more safeguards for seniors using FHA reverse mortgages.
-- Source: CongressDaily
For information on how bankruptcy may help you stop foreclosure and save your home, speak with a local bankruptcy attorney.
Tags: foreclosure, housing stimulus, stimulus
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