Rep. Doris Matsui And Senator Bob Menendez Reintroduce Legislation To Provide A Timeout On Housing Foreclosures Will Provide Immediate Relief To Struggling Homeowners

Press Release

Today, Rep. Doris Matsui (CA-05) and Senator Bob Menendez reintroduced bicameral legislation that would defer foreclosure activity for up to nine months for certain responsible homeowners who are struggling with their home loans. The Home Retention and Economic Stabilization Act would apply to homeowners making less than a certain income who are stuck in costly home loans, such as sub-prime or payment option arm mortgages, and would require them to continue to make mortgage payments and remain responsible during their deferment period.

"Over the last year, I have met with many Sacramento area families who are struggling with their mortgages in today's volatile economy. I believe that we must preserve the American dream of homeownership, and help hard-working Americans to weather these uncertain economic times," said Rep. Matsui.

Sacramento ranks amongst the top cities in the nation in the amount of foreclosures happening everyday. Nationally, an estimated 8.1 million homeowners will reach foreclosure in the next four years, according to Credit Suisse. This equates to one in six mortgages in the United States going into foreclosure proceedings.

"With the new wave of home foreclosures expected and unemployment rising, this is timely and necessary legislation to provide responsible relief to homeowners who are struggling with bad home loans." Rep. Matsui continued, "We need to bring immediate and responsible relief to both homeowners and lenders. Homeowners need to be reassured that they will be able to stay in their homes for years to come. We must calm the turbulent waters of the economic crisis, while giving financial institutions confidence in offering lending services in the future."

"Sacramento has been particularly hard-hit by the housing crisis. My intention is to find responsible relief for homeowners and viable solutions to their financial challenges. I will continue to work to find solutions to help Americans handle the housing crisis. By addressing the housing crisis with these solutions now, we can ensure a better, more stable America in the future," concluded Rep. Matsui.

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