Tomorrow, the Senate could vote on the Foreclosure Prevention Act of 2008 and decide whether this bill aimed at helping homeowners avoid losing their homes can continue on its path towards approval. The most important and controversial part of this bill is a provision that would allow judges the ability to reduce mortgage balances for at-risk borrowers to current market prices. For example, a mortgage balance of $200,000 could be reduced to what the home would sell for on the open market. Thus, saving the borrower hundreds of dollars a month in mortgage payments.
What do you think? Will it pass? Should judges be given the authority to reduce at-risk mortgage payments? So many questions...but this bill could help a large group of homeowners keep their homes from foreclosure.
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