FORECLOSURE ASSISTANCE FOR FAMILIES, HELP FOR VETS, $7,500 HOMEBUYER TAX CREDIT

May 7, 2008 – Washington D.C. – Congresswoman Shelley Berkley (D-NV) is urging passage of a legislative package that will address America’s mortgage crisis and the downturn in the housing market. The package of bills will help Americans facing foreclosure keep their homes, aid families in avoiding future foreclosures, and help the recovery of communities like Las Vegas harmed by empty homes resulting from tough economic times and the credit crunch.“Our community has been on a housing rollercoaster that has left families facing foreclosure and homes vacant across the Las Vegas Valley. This package will help families stay in their own homes and will aid in preventing future foreclosures. And it provides incentives designed to get properties out of foreclosure by providing families new opportunities and resources to help them become homeowners. Congress should also act to approve a provision I worked to pass in the House Ways and Means Committee that will provide a $7,500 tax credit to first time homebuyers,” said Berkley. “America’s veterans will also receive special help so they can realize a piece of the American dream by owning a home of their own.”

KEY HOUSING HELP PROVISIONS

• Provides mortgage refinancing assistance to keep families from losing their homes, protects neighboring home values, and helps stabilize the housing market.

• Gives first-time homebuyers a refundable tax credit that works like an interest-free loan of up to $7,500 (to be paid back over 15 years) to spur home buying and stabilize the market.

• Expands the FHA program so borrowers in danger of losing their home can refinance into lower-cost government-insured mortgages they can afford to repay.

• Makes $15 billion in loans and grants to states to acquire foreclosed homes standing empty, to rehabilitate foreclosed property, and to restore home values in neighborhoods hit hard by the crisis.

• Supplies states with $10 billion of additional tax-exempt bond authority in 2008 to refinance subprime loans, make loans to first-time homebuyers and to finance the building of affordable rental housing.

• Provides taxpayers who claim the standard deduction with up to an additional $700 standard deduction for property taxes.

• Increases VA Home Loan limit for high-cost housing areas so veterans have more homeownership opportunities.

Helps returning soldiers avoid foreclosure by lengthening the time a lender must wait before starting foreclosure, from three months to one year after a soldier returns from service.