U.S. Senate Will Debate Foreclosure Bill
Debate will begin in the Democrat-lead United States Senate next week on a foreclosure bill that will allow bankruptcy judges to erase mortgage debt and provide billions to rehabilitate abandoned properties, Reuters reported February 22, 2008.
The bill, known as the "Foreclosure Prevention Act of 2008" and sponsored by Democrat leader Harry Reid of Nevada, likely will have bipartisan support for some aspects of the legislation and fierce Republican opposition to other aspects.
"Banking lobbyists say the bankruptcy provision would drive up borrowing costs since lenders will want to charge more as an insurance policy against possible bankruptcy-related losses."
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