Should congress implement a homeowner bailout program?

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Issue #44	Date Added	Status
Should congress implement a homeowner bailout program?	Wednesday 14th May 2008 11:14:54 AM	Open

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Do you think homeowners about to default on their mortgages should receive special treatment to help them keep their houses?
Congress appears split on the issue. On Wednesday, the House began debating Democrat-sponsored legislation that would let the government back loans for homeowners facing foreclosure and would reduce the principal owed on those mortgages. Many Republicans oppose the bill, and President Bush has threatened to veto it.
The proposed legislation would allow the Federal Housing Administration to insure up to $300 billion in new loans over four years.
In order to qualify, lenders would have to cut the debt to no more than 85% of the homes' appraised value. If the FHA-refinanced loans defaulted, the FHA would pay the lender the outstanding principal.

jfreedman