More Help from Washington?

Yesterday the Senate announced that it had reached a bipartisan compromise on a plan to aid families facing foreclosure. This is good news as the lawmakers have been unable to reach agreement on some of the key provisions already passed by the house.

The compromise includes:

· Foreclosure aid. A $4 billion package to aid communities hard hit by foreclosures and mortgage delinquencies. Local governments could use the funds to buy and rehabilitate foreclosed homes at a discount.
· Government-backed mortgages. Increased loan limits for FHA- guaranteed mortgages.
· Financial counseling. About $100 million in new funding for housing counseling for troubled families.
· Tax credit. A $7,000 tax credit, over two years, for buyers of foreclosed homes or properties on which foreclosure action has been filed.
· Business tax relief. Authority for home builders and other firms that are losing money to reclaim taxes paid up to four years ago vs. two years now.

The Mortgage Bankers Association applauded the plan, saying it would "keep at-risk borrowers in their homes."