Foreclosure Prevention Act of 2008

The Senate began debate on a bipartisan measure to deal with the housing slump. The Foreclosure Prevention Act of 2008 is a legislative package intended to address the national housing crisis and help Americans avoid foreclosure. If enacted, the bill would address the following:
1. Help families keep their homes by increasing pre-foreclosure counseling funds, expanding refinancing opportunities, and amending the bankruptcy code to allow the modification of nontraditional and subprime mortgages on primary residences; this proposal is currently the most hotly contested of the bill.
2. Help communities impacted by foreclosures by allowing localities with high foreclosure rates to access Community Development Block Grants (CDBG) funds to purchase foreclosed properties for rehabilitation, rent or re-sale;

3. Help struggling businesses recover by expanding the carryback period from two years to five for them to utilize losses incurred in 2006, 2007 and 2008 to offset prior years’ income;

4. Help families avoid foreclosure in the future by amending the Truth-in-Lending Act to improve loan disclosures during the original loan and refinancing process.