House Votes To Spend $15 Million On Foreclosed Properties

Washington, DC (AHN) - On a 239-188 vote, the House on Thursday passed a mortgage 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 on Thursday.

President George Bush has threatened to veto the two bills, which he believes favor lenders and speculators.

The author of the first bill, Rep. Maxine Waters of California, said her aim was to stop neighborhoods from depreciating in value because of the rise in the number of abandoned and foreclosed homes. But the Republicans claimed the relief package may encourage lenders and investors to foreclose right away instead of seeking other ways to assist the struggling homeowners keep their homes.

The Democrat-backed bill was also supported by 39 Republicans. Michigan Rep. Fred Upton, a Republican, explained to the Washington Post, "People are in a world of hurt. My sense 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."

About 1.2 million homes are in danger of foreclosure, while 3 million more may be added in the next two years if the American economy does not improve.