The Democratic Foreclosure Plan

Did you know our Democratic Senators have a plan for the housing and mortgage crisis? You can be forgiven if you don't, the media has a tough time reporting on Democratic solutions to our problems. The plan is called the Foreclosure Prevention Act (S.2636), and it is currently in the Senate, just waiting to be filibustered by the Republicans there. Here's what Sen. Schmumer has to say.

Democrats have a plan to address this crisis.

* We would immediately authorize an additional $200 million for housing counselors who can help keep a half-million at-risk families in their homes.

* Our plan would $4 billion to help local communities hardest hit by foreclosures buy back and rehab empty houses, so that property values in the surrounding neighborhoods don't plummet further.

* We would also let homeowners who are forced into bankruptcy get their mortgages modified to reflect their lower home value, just like bankruptcy courts can modify loans for vacation homes and yachts.

* Finally, Senate Democrats would amend the Truth in Lending Act to require simplified disclosures of interest rates and payments, helping working families avoid foreclosures in the future.
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These foreclosures hurt all of us. They damage the economy in a downward spiral of falling home values and decreased tax bases.

Worse, they put our friends and neighbors out of their homes. It's not right, so Senate Democrats are standing up against it. Republicans are standing in our way.

- DSCC Email

Just a reminder that even as our Presidential candidates are discussing this on the stump, their colleagues in Congress are doing all they can to put words in to action. Luckily, we can give them a hand next year by adding Mark Warner to their august society.