Not ready to hand over a blank check to Treasury Secretary Henry Paulson, Democrats and Republicans alike are asking for provisions that would protect the taxpayers.

The senate democrats have also proposed a plan that would require the federal government to create “a systematic approach for preventing foreclosures and ensuring long-term, sustainable home ownership through loan modifications and the use of the HOPE for homeowners program.”

Chris Dodd, Senator from Connecticut who is also the Senate Banking Commitee Chairman has many hopes for the proposal. His proposal includes a change in the federal law which would allow judges to modify a bankruptcy filers primary residence mortgage, currently judge can only modify loans on second homes. Senator Dodd also wants to terminate the Treasuries authority to buy troubled by the end of next year.

Although this is a time sensitive issue, we can only hope that all interest are thought of, including those of troubled homeowners.

This entry was posted on Tuesday, September 23rd, 2008 at 12:23 pm and is filed under Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.