Boca Raton Bankruptcy Attorney

Housing and Recovery Act

Passed in response to increasingly severe problems affecting the nation’s homeowners, the Housing and Economic Recovery Act of 2008 aims to alleviate the strains of the ongoing subprime mortgage crisis on the typical American household through a number of measures.

The measures called for by the Housing and Recovery Act are some of the most sweeping of any recent congressional resolution. Below are some of the more important points that might affect your personal borrowing and spending capacity.

Basic Components of the Act

At its broadest, the act sets aside $300 billion for subprime borrowers who stand to lose their homes, at the same time restoring faith in major government-backed financial institutions. Although the related “HOPE for Homeowners” program has only seen a fraction of the expected 400,000 voluntary participant households enroll, hearings to discuss reforms to this act began in February of 2009.

The recovery act also establishes the Federal House Financing Board and the Office of Federal Housing Enterprise Oversight, intended to prevent the sort of borrowing upon which many blame the current crisis.

On a more personal level, if you are a first-time homebuyer, the act grants you up to $7,500 in tax credit. Although this amount must be paid back to the government over the next 15 years, no interest is involved, and the process has been as streamlined as possible.

Contact Us

If you or someone you love is facing the possibility of bankruptcy, contact the Boca Raton bankruptcy attorneys at the law offices of Eric N. Klein & Associates by calling 561-353-2800 today to find out what you can do.