Las Vegas real estate, mortgage, appraisal blog

September 30th saw a proposal for mortgage assistance for homeowners considered at-risk for foreclosure being presented before the Senate. First time homeowner tax incentives and work to stabilize the lending markets have not been true solutions to the problem. A recent article in Housing Predictor gave more details as to what will be proposed.

A proposal to halt the record number of foreclosures and force lenders to work with homeowners to modify mortgages was introduced in the Senate Wednesday by Rhode Island Senator Jack Reed. Rhode Island is one of the worst 10 states to be affected by the foreclosure epidemic.

The bill would establish a new mortgage payment assistance program to aid families under the threat of foreclosure. The legislation is sponsored by three additional senators as the Preserving Homes and Communities Act of 2009, and is intended to help address the housing crisis by requiring that homeowners are evaluated for and offered loan modifications by bankers.

The plan would also provide incentives to states and local governments to create mediation programs and provide for homeowners to meet face to face with banking representatives. It would provide $6.3-billion in funding to offer homeowner grants and subsidized loans and $80-million in federal matching funds to states and local governments damaged by the foreclosure epidemic.

The Senate is looking ahead to help stabilize the economy by starting where many would like them to, at home.

The proposal is expected to receive broad support in Congress. "More and more households are finding that even with a fixed-rate mortgage that they could afford before the recession, they are just one pink slip away from losing their biggest investment," said Reed.

"Until we stabilize the housing market, we simply won't get a handle on the broader economic crisis," said Senator Dick Durbin (D-IL), a co-sponsor of the bill. "Voluntary efforts to keep families in their homes have failed. This bill will force lenders to modify qualified mortgages, create a homeowners assistance program and give states a bigger role in mediation efforts. It's long past time for the Senate to step up to keep families in their homes and to help lead the way toward economic recovery. This bill will help achieve those goals."

On a somewhat more positive side, pending home sales are on the increase. This, of course, does not completely reflect closed transactions but is a positive sign that Americans are not as scared by sensational reporting as some had feared they would be. MSNBC News had more to say on the subject.