Rep. Foster Votes to Keep Families in Their Homes
Statement
Rep. Foster Votes to Keep Families in Their Homes
Supports Fair Legislation to Address Housing Crisis, Prevent Home Foreclosures
In an effort to keep people in their homes and reduce the number of home foreclosures in the 14th District, Rep. Bill Foster (IL-14) voted to pass H.R. 1106, the Helping Families Save Their Homes Act.
"I have seen firsthand the impact of the housing crisis on the families of the 14th District. In towns across the district, foreclosure rates are on the rise, and we must act now so that responsible families who have played by the rules can stay in their homes," said Foster. "This bill helps all homeowners - not just those facing foreclosure. According to a story in The Washington Post, each foreclosed home reduces nearby property values by as much as 9 percent."
"I am pleased that this bill includes help for our local community banks and credit unions," said Foster. "This should have the effect of reducing the insurance premiums that banks have to the Federal Deposit Insurance Corporation, increasing the overall health of their business and protecting their employees."
To encourage lenders to modify loans for more families in danger of losing their homes, H.R. 1106 uses bankruptcy as a court of last resort - allowing bankruptcy judges to modify the terms of loans for families with existing mortgages - just as investors in vacation homes, real estate speculators, and corporations have been able to do for years.
"This bill ensures that bankruptcy remains a useful last resort for some homeowners headed for foreclosure," said Foster. " However, I was part of a centrist group that pressed for reasonable changes to ensure that this does not create an escape hatch for those who are capable of paying off their mortgages but are simply looking for a better deal."
Concluded Foster, "The housing crisis is at the center of our nation's economic woes. By stabilizing the housing market, we can begin to pave the way for economic restoration."
Source