Graham Supports Bill to Benefit Homeowners
U.S. Senator Lindsey Graham (R-South Carolina) today voted in favor of the Foreclosure Prevention Act of 2008. The Senate approved the measure 88-12.
"While not a perfect package, this bill will hopefully provide short-term relief to homeowners facing foreclosure and flexibility to lenders to renegotiate loan terms," said Graham. "Additionally it provides incentives for homebuyers to help stimulate the housing market."
The legislation includes the following provisions:
* A $7,000 tax credit, spread over two years, for Americans who purchase a foreclosed home
* A standard property tax deduction for taxpayers who do not itemize on their returns
* Over $10 billion in bond authority that could be used for subprime loan refinancing, mortgages for first-time home buyers, or multifamily rental housing
* Extension - from two years to four years - of a provision that allows corporations to apply current losses to previous profits and receive applicable tax refunds
* An additional $180 million for foreclosure prevention counseling
* $4 billion for the Community Development Block Grant program
The bill must now be passed by the House of Representatives.