06-27-08

The foreclosure bill is once again delayed so Senate will have to take up the housing bill that could save millions of homeowners from foreclosure until after the 4th of July recess. However the delay this time was not caused by different parties disagreements but rather a move by Sen. John Ensign (R-Nev) who wants to tag energy tax breaks to the bill and the backlog in the senate ahead of this bill all lead to this delay.

Every delay in this bill is resulting thousands and thousands of foreclosures across this country and further deterioration the economy as a whole. But what is still not certain is what the effect of this bill will be on the housing market since the provisions are all voluntary, in other words your bank would have to agree to let you go to the FHA, if they don't agree there is no deal for you. The voluntary aspect of this bill is not likely to change and there is no way to actually force the banks to hand you over to the FHA. Our hopes are that it would cost them a lot less money in the long run to hand over loans to the FHA rather then proceeding with the foreclosure of the home.

While the bill did start off to a great start no one can be sure how well this version will work. Many compromises had to be made in order to get approval from the White House and the resulting version is not as effective as it otherwise could be. The voluntary aspect of the bill is also cause for concern since all the mortgage holder has to say is no and the homeowner would not get any aid. But thats if the White House does not just veto the bill which Bush made clear was a possibility, however with this watered down version approval seems more likely.

Everyone that is at risk of foreclosure is advised not to wait for this bill to be enacted since there is a possibility that it could be vetoed or that your bank will not want to participate since it is voluntary. If you are at risk of foreclosure make sure you look into FHASecure and call Hope Now.

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