Truemors
Home owners in Virginia can finally, with a looming threat of foreclosure homes in Virginia, breathe a sigh of relief. The subprime market, for quite some time, had been waiting for relief in the form of the ‘Mortgage Reform Bill’ With foreclosure activity up by 14% in the second quarter, the Senate voting to pass the Foreclosure Prevention Act comes as a blessing to many. With the nation reeling under the foreclosure crisis, Sen. Jay Rockefeller, D-WV voted for the bill. President Bush is expected to sign the Bill next week.
West Virginia, which has an increasing number of vacant properties, will benefit, as this gives a chance to home owners and veterans to continue living in their homes and work on getting their neighborhoods in order again.
Funding of billions of dollars for the Community Development Block Grant (CDBG) is part of the bill, being for states and local communities to buy properties that have been foreclosed, so that they can be leased or sold to the families again. Once the numbers of vacant properties go down, chances are that properties of homeowners will see their property values either increasing, or remaining the same.
The Act also provides housing counselors with extra funding in West Virginia. Foreclosure homes in Virginia will have newer options to refinance their subprime loans, allowing veterans more time to make mortgage payments and also relief in the form of no increases in interest rates for a year.
Secured government credit for the mortgage giants Fannie Mae and Freddie Mac has also been provided through the Act. They have spent over a billion dollars over the last ten years in West Virginia helping people own homes; this being the primary reason of West Virginia having a higher rate of home ownership than the national average.
Also, now borrowers will now be needed to given improved information in terms of refinancing or new mortgages, helping them decide in a more informed manner.
Tax relief provisions in the form of municipalities having increased bond authorities, a federal standard property tax deduction (for WV homeowners), a carryback in extending the NOL (net operating losses); and for the purchase of homes in foreclosure, a $7000 tax credit, are also included in the Act.
Finally, this will also help bonds that are funded and insured by the FHL banks making them tax-exempt. Virginia foreclosures are all set to see better times.
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