Cohen Introduces Bill to Prevent Foreclosures, Help Families Keep Their Homes

WASHINGTON, D.C. – Congressman Steve Cohen (D-TN) has authored legislation to establish a grant program for state and local governments to help provide mediation between homeowners and lenders in an effort to help prevent foreclosures in Memphis and across the country. The Cohen measure comes at a time when the GOP-controlled House of Representatives has spent the past two weeks passing legislation that harms homeowners -- the HAMP Termination Act of 2011 and the Emergency Mortgage Relief Program Termination Act. The Cohen measure is an effort to help families keep their homes and prevent foreclosures.

“Memphis has been hit hard by foreclosures,” said Congressman Cohen. “Foreclosures evaporate middle class wealth. My bill would help families keep their homes and avoid the stress and difficulties of foreclosure.”

Congressman Cohen’s legislation -- the Preventing Homeowners from Foreclosure Act of 2011 -- would create a grant program to help local communities establish foreclosure mediation programs. Foreclosure mediation would postpone Sheriff sales of all owner-occupied residences until the homeowner has had an opportunity to meet with a housing counselor to explore viable alternatives to foreclosure. It will give troubled homeowners and lenders an opportunity to meet face-to-face before any foreclosure goes forward.

The program would also establish an outreach program to raise homeowner awareness of the mediation program. Any state or local government that receives help from this grant program would be required to keep a record of each mediation carried out, including the nature of any loan modification.