Sen. Jeff Merkley has written a letter to President Obama proposing to bring back the First Time Home-buyer's tax credit, along with focusing on a renewed effort in the Home Affordable Modification Program.
The home buyers tax credit was very successful in 2010. Sen. Merkley would like to make this tax credit permanent for first time home-buyers.
His plan also focuses on families that are currently facing foreclosure. He supports a "short refinance" that would assist families facing foreclosure to help reduce interest rates. He would like to require servicers have a single point of access when they seek a loan modification. He would like to stop the "dual track" that servicers are using to continue foreclosure proceedings while they consider a loan modification. The plan would also allow a "lifeline" bankruptcy option giving banruptcy judges the power to modify payments on home loans just as they are able to do now for second homes and yachts.
The depressed housing market contunues to hinder the nations economis recovery. Sen. Merkley wants a renewed focus on housing because it is essential to n economic comeback.