Foreclosure Prevention Act of 2008

Senate Democrats have proposed some new legislation intended to help individuals avoid foreclosure. Called the Foreclosure Prevention Act of 2008, this legislation would contain the following benefits:

1. An increase in pre-foreclosure counseling aimed at helping a half million homeowners find solutions to help them keep their present homes;

2. An increase in the cap on Housing Finance Agency bonds, with the additional money used to fund sub-prime loans and assist first-time home buyers;

3. Improve the disclosures given to borrowers when they purchase a new home as well they refinance their existing home;

4. Change the bankruptcy code to allow some homeowners to keep their homes after declaring bankruptcy;

5. Extend a provision that allows corporations to apply excess net operating losses to tax returns from prior profitable years and receive any applicable refunds; and

6. Allow areas with the highest foreclosure rates access to Community Development Block Grant funds to be used toward purchasing these properties, rehabilitating them if necessary, and renting or re-selling them.

This act is just beginning the legislative process. It has to pass through the House and Senate and then be signed by the President before it will take effect. I'll be sure to keep you updated as it progresses through the legislative channels