Merkley unveils his new housing market plan | Politics

PORTLAND, Ore. - Senator Jeff Merkley (D-Ore.) stopped by north Portland on Tuesday to unveil his plan to boost the housing market and stem the tide of foreclosures.

"We're not going to see a true economic recovery until we do something about the broken housing market," said Merkley.  "I met with Portland homeowners today who dealt with months of confusing instructions to get a mortgage modification, only to be told 10 months later they didn't qualify and their home was facing foreclosure. My plan will put homeowners first and foreclosures last."

According to Merkley's office, over 300,000 foreclosures have been filed against American families each month for the past 20 months and in Oregon, 28,000 families have been served with foreclosure filings.

Merkley is proposing a six-point plan to get the mortgage situation back on track:

• Bolster the market by providing a permanent tax credit for first-time homebuyers;
• Assist families facing foreclosure through a national "short refinance" program that would enable homeowners who are facing foreclosure to refinance their mortgages based on current interest rates and home values;
• Stop the "dual track" that continues foreclosures while loan modifications are evaluated until it is determined that the borrower is not eligible or does not qualify for a loan modification;
• Provide homeowners with a single point of access when they seek a loan modification to improve accountability and ensure greater clarity during the process;
• Establish a third-party review prior to foreclosure and fully enforce existing law; and
• Implement the "lifeline" bankruptcy option by providing bankruptcy judges with the power to modify the terms of home loans just as they can with vacation homes and yachts.
• For more on Merkley's plan (pdf)