DEFINITION of 'Foreclosure Prevention Act of 2008'

A housing act that is designed to help families keep homes that are facing foreclosure and stabilize the overall housing market. The American Housing Rescue and Foreclosure Prevention Act of 2008 seeks to achieve this goal through measures such as increased tax credits for low-income households and first time home buyers, and by encouraging the use of housing bonds to finance rental properties and affordable housing projects.

BREAKING DOWN 'Foreclosure Prevention Act of 2008'

The American Housing Rescue and Foreclosure Prevention Act of 2008 was passed by Congress on July 26, 2008, and was signed into law by President George W. Bush on July 30, 2008. The housing rescue law does not solve all of the problems created by relaxed subprime lending practices, the bursting of the U.S. housing bubble in 2006 and the effects of a sluggish economy, but it is expected to restore lending and borrowing stability for families in the future.

The bill expanded the available tax programs in an attempt to alleviate the financial pressures on low- and middle-income households. It also attempts to restore confidence in the American credit markets.

Homeowners facing foreclosure should consider all details; however, as conditions apply, and application to the program has a cost. For example, if homeowners sell their homes within the five years following a mortgage refinance, they must relinquish 50-100% of their proceeds to the government, according to a sliding scale.

RELATED TERMS
  1. Foreclosure Action

    The legal proceedings initiated by a lender in the case of mortgage ...
  2. Foreclosure Crisis

    A period of unusually high home foreclosure rates that caused ...
  3. Foreclosure Filing

    The initial legal process of selling a mortgaged property that ...
  4. Foreclosure Buyout

    A refinancing program that allows a homeowner to avoid foreclosure ...
  5. Zombie Foreclosure

    A situation (or a home in this situation) that occurs when a ...
  6. Serious Delinquency

    When a single-family mortgage is 90 days (or more) past due and ...
Related Articles
  1. Investing

    Can You Dispute A Foreclosure?

    The bank has foreclosed on your mortgage, but do you really have to leave? Learn how to fend off the lenders and gain the time you need to save your home.
  2. Investing

    Don't Get Trapped in a Zombie Foreclosure

    Understand how foreclosures work and you can avoid the disastrous consequences of having a zombie foreclosure.
  3. Investing

    Top 6 Scariest Neighborhoods For Homebuyers

    If you're looking for a spooky spot this Halloween, these communities boast the most horrifying foreclosure rates in the country
  4. Investing

    Saving Your Home From Foreclosure

    Learn the tactics you can use to prevent your home from being repossessed.
  5. Investing

    What Homeowners Need To Know About Zombie Titles

    Understanding how the foreclosure process normally works - and how it dysfunctions in today’s market - will help you avoid becoming a victim.
  6. Investing

    Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  7. Investing

    How To Delay Foreclosure

    While losing a home can be a traumatic event for you and your family, it's best to find ethical means of delaying or avoiding foreclosure, even if it takes more time.
  8. Investing

    The Pitfalls of Buying a Foreclosure House

    Find out if the house you're eyeing is really a good deal.
  9. Personal Finance

    Avoid Foreclosure: How To Handle An Underwater Mortgage

    Foreclosure is the biggest fear of any struggling homeowner. These tips just might save your credit rating.
  10. Investing

    What Is A Short-Sale Property & How Does It Work?

    A short sale is an alternative to foreclosure whereby indebted owners get permission from a bank to sell their house for less than amount of the mortgage.
RELATED FAQS
  1. What is Foreclosure Investing?

    Foreclosure investing, despite the promises of late-night television infomercials, is not for the inexperienced. Read Answer >>
  2. How does a decline in housing prices affect the banking sector?

    Learn about the affects on banks when housing prices go down, including loan delinquency rates, mortgage foreclosures, and ... Read Answer >>
  3. My mortgage payments are no longer affordable; is there anything that I can do to ...

    The most important thing for you to remember if you find that you may not be able to make this month's mortgage payment is ... Read Answer >>
  4. What are key government regulations that affect investing in the banking sector?

    Discover how the global financial crisis of 2008 changed the face of banking in the United States and around the world by ... Read Answer >>
Hot Definitions
  1. Pro Forma

    A Latin term meaning "for the sake of form". In the investing world, it describes a method of calculating financial results ...
  2. Trumpcare

    The American Health Care Act, also known as Trumpcare and Ryancare, is the Republican proposal to replace Obamacare.
  3. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  4. Portable Alpha

    A strategy in which portfolio managers separate alpha from beta by investing in securities that differ from the market index ...
  5. Run Rate

    1. How the financial performance of a company would look if you were to extrapolate current results out over a certain period ...
  6. Hard Fork

    A hard fork (or sometimes hardfork) is a radical change to the protocol that makes previously invalid blocks/transactions ...
Trading Center