LOS ANGELES (CBS) — Senator Barbara Boxer is calling on lawmakers to give millions of struggling homeowners the chance to refinance their home loans or face another potential meltdown in the housing market.
At a press conference on Tuesday, Boxer said the Helping Responsible Homeowners Act would allow up to two million “additional responsible homeowners” to modify their loans by easing restrictions that she said has kept them locked in to sky-high mortgage payments.
KNX 1070’s Karen Harlow reports the lawmaker wants to take advantage of historically low interest rates to help homeowners meet their obligations.
The bill aims to help those who continue to make their mortgage payments on time, but whose homes have lost value.
“In this housing crisis, we’ve been kind of behind the 8-ball,” said Boxer. “We’ve got to get out in front of it, and we want to avert a wave of defaults.”
Over 3.5 million first mortgage loans in the U.S. are currently at some point in the foreclosure process.