Mortgage Relief Bill Of Voinovich Becomes Law In December

March 24th, 2008 | Tags: Foreclosure

The Neighborhood Housing Services of Cleveland, are holding weekly counseling trying to make foreclosure victims and other residents to become aware about the danger and prevention of foreclosures. Speaking at one such session Senator George V. Voinovich (R-OH) assured that that the counselors would be available to those seeking help upon prior appointment. He shared information on his foreclosure related activities.

The senator has introduced two pieces of legislation aiming at relief from foreclosure troubles. The first one – the Mortgage Relief Act of 2007 was made into law by President Bush last December. By it the borrower no longer has to pay tax on the amount of the loan that is forgiven by the lender. Previously this savings was calculated to be savings. This bill is the first of its kind that directly targets the foreclosure crisis. The second bill – the Expanding American Homeownership Act will permit those who are facing foreclosure to reset their interest rates by refinancing without any burdens imposed by the Federal Housing Administration, as was the normal procedure hitherto. This bill has been passed both by the House and the Senate but there are certain differences to be ironed out before the final version is signed.

It is estimated that the foreclosure has affected mostly the minorities, the senior citizens and the immigrants. They are now having to sell their houses for less than what they paid for it, because often the loan amount is more than the current value of the house. The rising number of foreclosures is having a terrible impact upon the residents of Ohio and its socio-economic structure. Ohio today has one of the highest numbers of foreclosures – 3.88%. The national average is 2.04%.

In another move the Attorney General of Ohio, General Marc Dann has cited laws by which it would be necessary for lenders to prove first that the house is in default and then proceed with the foreclosure process. This has drawn wide attention from all levels across the country. The lenders will have to prove, supported by adequate documents that they have the right to foreclose before actually doing so. This clause had always been there but had been overlooked because of the time involved in arranging the papers. Dann feels that it is now time that the borrowers were given some time to put their house in order. He also suggests that taxes should also be kept on hold until the issue of documents is resolved.