House Passes Bill Allocating $15 Billion For Purchase, Repair Of Foreclosed Properties

Washington, D.C. (AHN) - In a 239-188 vote, the House passed on Thursday a bill that allocates $15 billion for states to purchase and repair foreclosed properties. A second measure that would grant the Federal Housing Administration $300 billion to refinance homes of distressed Americans whose units are on the brink of foreclosure is slated for voting also on Thursday.

However, President George Bush has threatened to veto both bills, which he believes favor lenders and speculators over homeowners.

The author of the first bill, Rep. Maxine Waters (D-CA) said her aim was to stop neighborhoods from depreciating in value because of the rise in number of abandoned and foreclosed homes. But some Republicans pointed out the relief package may encourage lenders and investors to foreclose right away instead of seeking other ways to assist the struggling homeowners.

The Democratic-sponsored bill was nonetheless supported by 39 Republicans. Rep. Fred Upton (R-MI) explained to the Washington Post, "People are in a world of hurt. My sens is there's a maneuvering room... There's still a good chance they'll get a bill the president can sign, knowing that a lot of the country needs help."

According to government statistics, about 1.2 million American homes are in danger of foreclosure, while 3 million more may be added to that list in the next two years if the economy does not improve.