Senator Webb Supports Measure To Help Virginia Homeowners Keep Their Homes

Virginia Foreclosure Rate Has More than Doubled Since 2006

April 1, 2008 -- Washington, DC- The Senate today voted overwhelmingly to begin debate on a measure co-sponsored by Senator Webb designed to ease the impact of the home foreclosure crisis on communities across the country. The “Foreclosure Prevention Act of 2008” (S. 2636), introduced last month to address the mounting nationwide housing crisis and help more families keep their homes, will receive a final vote later this week or next.

This legislation increases funding for loan counseling to homeowners facing foreclosure; expands refinancing opportunities; provides local governments with $4 billion in Community Development Block Grants to purchase and rehabilitate foreclosed properties; and grants tax relief to small businesses affected by the housing downturn. The bill also seeks to avoid foreclosures in the future by making the loan and refinancing process more transparent and consumer friendly.

“This is a responsible piece of legislation designed to help stem foreclosures and give federal resources directly to local governments to aid communities in recovering from this economic downturn,” said Senator Webb. “I am very pleased to see strong, bipartisan cooperation as we work to find a solution to reverse this trend.”

“Just last week, the federal government intervened in the market to bailout the financially-troubled Bear Stearns,” said Webb. “Instead of the administration’s fixation on Wall Street alone, we need an equal focus on the livelihood of families and communities on Main Street.”

In Virginia, the foreclosure rate in the mortgage market has more than doubled since the first quarter of 2006. With increased foreclosures, communities are seeing a decrease in home prices. The increased costs to Virginia have been estimated at $2.21 billion over the next year and a half.

“It has become increasingly obvious that this isn’t a problem that we can leave to the whim of the market alone,” said Webb. “As we develop policy responses to the financial crisis, it is essential that we protect our working people by giving them more bargaining power and ensuring fairness in our tax system.”

Constituents facing home foreclosure are encouraged to contact the Homeowner HOPE hotline at: 1-888-995-HOPE (4673). The hotline is available 24 hours a day, seven days a week.

Source: Senator Jim Webb