Ask the Expert: Foreclosure Defenses

<sup>Dear Mr. Soliman:

Thank you for contacting me regarding housing market reforms and foreclosure prevention legislation. I recognize how important this issue is, and would like to share with you what Congress and the Obama Administration have done to help.
Like you, I am very concerned about this severe economic crisis, which has been caused in part by the declining housing market. As you may know, I supported the Emergency Economic Stabilization Act of 2008 (Public Law 110-343) to help ease the flow of credit and stabilize financial markets. As part of President Obama's efforts to reduce foreclosures, the Administration is using $75 billion of economic rescue funds to implement a mortgage modification program. Specifically, the modification program would require that mortgages in cases where refinancing is more cost effective than foreclosure be modified to make monthly payments more affordable.
Additionally, President Obama is implementing a systematic program through the government sponsored enterprises Fannie Mae and Freddie Mac to refinance loans into more affordable interest rates. This program targets homeowners who have lost equity due to the housing market decline, yet have not defaulted on their payments. I am hopeful that these programs will fulfill the President's promise to help American homeowners.
For further information about efforts that the Administration is taking to assist Americans during this difficult time, please visit www.makinghomeaffordable.gov and www.financialstability.gov.
Please know that I will keep your comments and suggestions in mind should further legislation to address our country's housing crisis come before the Senate.
Once again, thank you for writing. If you have any additional questions or concerns, please do not hesitate to contact my Washington, D.C. office at (202) 224-3841. Best regards.</sup>

^{Sincerely yours,}

^{Dianne Feinstein
United States Senator}

posted by Mortgage-Mess  # 2:45 AM