Mar 14, 2008 6:25 pm US/Eastern
Cardin Introduces Bill To Stop Foreclosure Crisis
Reporting
Adam May
BALTIMORE (WJZ) ―
Some startling new numbers are out concerning the housing crisis.
More than one in 600 Maryland homes are in financial danger.
Adam May reports a top lawmaker thinks the best way out of this mess is to find new housing customers.
In front of another Baltimore home for sale on the verge of foreclosure, Senator Ben Cardin made the announcement of a new proposal.
The proposal would give first-time home buyers big tax credits.
"I am convinced the housing crisis triggered the current economic downturn, and if we're going to be able to get back to strong growth in the economy we have to start with housing," said Senator Cardin.
Cardin's having a program in Washington, D.C. that offers a $5,000 tax credit reviewed by a group of economists.
He wants a new national first-time buyer tax credit to be short-term and offer more money to stimulate buyers.
Leaders of neighborhood organizations like Belair-Edison Inc., which works with homeowners in trouble, applaud this idea and other efforts to expand counseling services and restructure mortgages.
"What we're finding in our neighborhood is a lot of people are losing their housing due to predatory lending and so whatever relief they can get, this foreclosure prevention act is ingenious," said Johnette Richardson.
With Maryland foreclosures up nine percent, community groups say some kind of action is overdue.
"We need intervention, and Senator Cardin is one of the only senators to address this. Everything out of the Bush Adminstration is voluntary, and we've seen very little effect on homeowners in distress," said Anne Balcer Norton.
Senator Cardin hopes to introduce the legislation within the next few weeks.
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