Bush Threatens To Veto Foreclosure Bill
Of course Bush and the GOP say that the bill will help lenders. It didn’t seem to bother the gang of crooks and thieves when business was booming and lenders where passing out loans to anyone who could sign their name.
It’s unfortunate that the average American homeowner is not a Wall Street business because we know Bush would pass that bill.
WASHINGTON (AP) — Strapped homeowners could refinance into government-backed mortgages and states would get money to deal with foreclosed property under Democrats’ housing aid plan.
The measures, slated for votes Thursday, constitute the most significant action Congress has taken to date to address the housing crisis that’s at the center of the nation’s economic woes.
President Bush has threatened to veto both measures, which he says reward lenders and speculators. Democrats counter that the bills will head off hundreds of thousands of foreclosures, stabilize the shaky housing market, and prevent neighborhood blight.
Those homeowners could refinance into new loans if their lenders agreed to take substantial losses on the original mortgages. Borrowers would have to show they could afford to make payments on the new loans. They would have to share with FHA at least half of their proceeds if they profited from selling or refinancing again.
The plan is projected to help roughly 500,000 borrowers at a cost of $2.7 billion over the next five years.
A separate bill by Rep. Maxine Waters, D-Calif., would send $15 billion in loans and grants to states for the purchase and rehabilitation of foreclosed properties. Proponents say it will prevent blight in neighborhoods plagued by abandoned, foreclosed homes.
