U.S. House discusses bill to assist struggling homeowners

The U.S. House of Representatives discussed the guidelines and potential passage of a bill on Friday that would provide federal funds to nonprofit counseling and legal organizations that assist homeowners who may be facing foreclosure, Housing Wire reported.

While the bill, dubbed "The Aiding Those Facing Foreclosure Act of 2010", would not provide funding for legal representation, it would allocate resources to aid homeowners who are unable to relocate and need assistance with default, delinquency or foreclosure issues.

The bill is sponsored by Rep. Marcy Kaptur of Ohio, along with 27 other representatives, and would amend the Emergency Economic Stabilization Act of 2008.

"It is unthinkable that we could have used TARP funds for every major corporation, all of the banks ... and yet we would deny homeowners in the hardest hit states some assistance," said Representative Maxine Waters, in defense of the legislation.

One in every 139 households were facing foreclosure in the third quarter of this year, and foreclosed properties made up 31 percent of all residential home sales in September, according to a recent RealtyTrac study.
 

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