2007-04-19 15:37:16 -

( EMAILWIRE.COM, April 19, 2007 ) WASHINGTON - People facing foreclosure may soon be thanking Senator Jack Reed (D) of Rhode Island for crafting legislation that he hopes will help homeowners, especially first-time homeowners, avoid losing their homes.

The Senator's spokesperson said that the bill, 'would aim to help borrowers who are in trouble and

help prevent others from facing such problems in the future.-

By most accounts America is facing a tidal wave of foreclosures and the wave is expected to grow. The Mortgage Bankers Association reported that foreclosure activity in the last three months of 2006 shattered a more than three and a half decade record.

Senator Reed is the Chairman of the Senate Banking Committee's Securities, Insurance, and Investment Subcommittee, and will hold a hearing today to discuss the state of the mortgage industry, particularly the subprime mortgage market. These loans were often made to borrowers who stated their income or had bad credit histories.

The legislation hopes to help educate consumers and provide financial counseling. It would also provide people more help after they've purchased a mortgage. House of Representatives member Barney Frank (D) of Massachusetts is also reportedly working on legislation to address the subprime mortgage market.

'One of the main reasons that we are seeing such a rate of foreclosures and problems with adjustable rate mortgages is that consumers were often unaware of the complexities of their mortgages,- said foreclosure expert, Patrick McGilvray, J.D., CFP®, President of www.TheHomeBuyingCenter.com. He continued, 'in addition, many people who call me from across the nation tell me stories of how they were lied to by their loan officers about the mortgage they were eventually sold.-

One group, The National Community Reinvestment Coalition, is urging Congress to establish a national fund to help homeowners in trouble and prohibit lenders from foreclosing until at payments are at least 60 days behind. The company's president, David Berenbaum said, "we are worried that lenders are rushing to foreclose before a consumer has had a chance to sustain homeownership.-

Another politician, Senator Charles Schumer (D) of New York, Chair of the Senate Banking Committee's panel on housing plans a bailout measure worth ‘hundreds of millions' of dollars in aid to help troubled homeowners.


Contact:
Patrick McGilvray, J.D.
Patrick@thehomebuyingcenter.com
Tel: 916-920-3278

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