Sen. Jeff Merkley (D-Ore.) unveiled a plan Tuesday to help struggling homeowners and reduce foreclosures as the housing market continues to find its footing. <\/p>\n
“We’re not going to see a true economic recovery until we do something about the broken housing market,” Merkley said. <\/p>\n
Merkley’s proposal would provide a permanent tax credit for first-time homebuyers and assist families facing foreclosure through a national “short refinance” program that would allow homeowners facing foreclosure to refinance their mortgages based on current interest rates and home values.<\/p>\n
The proposal also would: <\/p>\n
• Stop the “dual track” that continues foreclosures while loan modifications are evaluated until it is determined that the borrower is not eligible or does not qualify for a loan modification.<\/p>\n
• Provide homeowners with a single point of access when they seek a loan modification to improve accountability and ensure greater clarity during the process.<\/p>\n
• Establish a third-party review prior to foreclosure and fully enforce existing law.<\/p>\n
• Implement the “lifeline” bankruptcy option by providing bankruptcy judges with the power to modify the terms of home loans just as they can with vacation homes and yachts.<\/p>\n
Foreclosures are expected to reach a peak this year while prices bottom out as the nation’s housing crisis trudges into its fifth year.<\/p>\n