U.S. Congressman Barney Frank Has A Plan For States To Buy Foreclosed Homes

U.S. Representative Barney Frank, a Massachusetts Democrat, wants the federal government to loan states $5 billion to buy foreclosed homes on the cheap and turn those properties into affordable housing, the Boston Herald reported February 26, 2008.

“'It’s a good time to do some socially responsible bottom feeding,' Frank, a Newton Democrat who chairs the House Financial Services Committee, told the Herald. 'Having (abandoned) property sit unsold on the market is just awful. We think states can buy it up - hopefully at reduced prices.'”

The idea is part of proposed legislation that would cost more than $7 billion to combat the foreclosure crisis.

Meanwhile, in the U.S. Senate, Massachusetts Democrat John Kerry has proposed, with Republican Senator Gordon Smith, using $10 billion in tax-free bonds to give distressed homeowners affordable loans.

Read The Boston Herald Article