Senate Works to Prevent More Home Foreclosures

Senator Jon Tester (MT) spoke today on the Senate Floor about the growing difficulties of the mortgage crisis, saying that "The housing market is the worst since the Great Depression," also adding that he is concerned about opportunities slipping away because of the failure of national leadership to invest in basic infrastructure. " See video at "Senator Tester on Rural America" ... about how the economic crisis is affecting workers, families, and communities.

This week the Senate is considering the Foreclosure Prevention Act of 2008, a very important bill which modernizes FHA so that it can better provide:

• Safe, rate-locked-in fixed mortgages to home owners
• Financial counseling for families in danger of losing their homes and protect
  
• Soldiers who come home to find themselves in danger of losing their homes.

The bill will also assist communities with large numbers of foreclosures and require lenders to really explain -- clear disclosures -- to future buyers and more. One additional thing to consider about this legislation -- this is an "assistance raises all boats" issue, i.e., when the mortgage market fails, it drags down everyone's housing values , creating more mortgage failures each time a wave of failures happens. Thus for homeowners with good mortgages, it's important to have compassion for those in trouble. Otherwise, just like the farm crisis of the 1980's, more and more families are likely to be endangered. To contact your Senator, click here.