Number: RS22943
Title: H.R. 6076: Home Retention and Economic Stabilization Act of 2008
Authors: Edward Vincent Murphy, Government and Finance Division 
Abstract: The Home Retention and Economic Stabilization Act of 2008 (H.R. 6076) would defer foreclosure for eligible mortgage borrowers for up to 270 days. If passed, the bill would give extra time to some borrowers and lenders to consider alternatives to foreclosure, including traditional loss mitigation and participation in the new Federal Housing Administration (FHA) program for refinancing troubled loans. Some policymakers believe that a moratorium on foreclosures (more accurately, a delay in executing foreclosures) could help stabilize housing markets and alleviate problems from the subprime financial turmoil. The bill would allow borrowers with subprime and negative amortization mortgages to delay foreclosure proceedings if they continued to make monthly payments established by the bill and maintained the property. Payments during the foreclosure are based on the lesser of the original minimum payment and a rate based on current market conditions. The bill also provides funds for housing counseling.
Pages: 6
Date: August 29, 2008