[Congressional Record (Bound Edition), Volume 158 (2012), Part 1]
[Senate]
[Page 1032]
[From the U.S. Government Publishing Office, www.gpo.gov]




                           FORECLOSURE CRISIS

  Mr. REID. Mr. President, in this country, owning a home means more 
than a roof over your head. It is the centerpiece of the American 
Dream.
  For many responsible Americans, the dream of home ownership has 
become a nightmare. When Wall Street greed collapsed the economy in 
2008, the housing market also collapsed. That meant free-falling home 
prices and a staggering number of foreclosures.
  No State in the Union was hit harder than Nevada, but California was 
hit extremely hard, Michigan, Arizona, and Florida. But for 5 
consecutive years, Nevada has led the Nation in foreclosures. The 
foreclosure rate in Nevada is 400 percent of the national average.
  Behind those statistics are people. Whether it is Nevada, Arizona, 
Florida, Michigan, or anyplace else in the country, statistics are 
people--families who bought homes where they could raise their families 
and enjoy life. Many Nevadans, like other Americans who worked hard, 
saved money and shopped responsibly, are now so far under water they 
can't see a way out.
  So who is responsible? There is plenty of blame to go around. Brokers 
sold loans that could never be repaid, buyers bought houses they 
couldn't afford, and banks bought bad loans to sell to investors. 
Regardless of who is at fault, millions of homeowners who did 
everything right are still on the hook for a financial crisis they 
didn't cause. Many of them have never missed a payment.
  Unlike some Republicans, I don't believe the answer is to throw up 
our hands and do nothing. Homeowners who have watched their equity 
evaporate don't have time to watch the market hit rock bottom, as one 
Republican candidate suggested. The President and Congress have taken 
action to ease this crisis. Not everything we have done to ease the 
crisis has worked, but we need to continue programs that are working 
and fix the ones that aren't. I support the President's efforts to 
reduce the hurdles to financing, and refinancing, for sure. Nearly 15 
million Americans could benefit from refinancing their loans at today's 
historically low interest rates.
  We must keep those who have lost their jobs from losing their homes 
as well. This proposal will help them reduce their monthly payments and 
save thousands of dollars every year. And for families who owe more 
than their house is worth, it will help them rebuild the equity they 
lost because of the collapse in the housing markets.
  Redtape should no longer keep responsible homeowners from refinancing 
their loans and restoring their futures. Redtape, I repeat, should no 
longer keep responsible homeowners from refinancing their homes and 
restoring their futures.
  There are some who advocate a do-nothing policy. There is nothing we 
can do to help. They couldn't be more wrong. Here is one example. My 
Nevada offices have posted several foreclosure workshops. More than 
2,000 people have taken the opportunity to sit down and face their 
lenders--often for the first time. Several thousand more have gotten 
help from caseworkers in my office. Caseworkers and owners have worked 
together literally to save homes from the auction block. I am hosting 
another workshop in Las Vegas this Saturday.
  We can't help everyone, but we must do more to help those we can. It 
is time for more Federal action. It is time to give homeowners in every 
State the tools they need to hold on to their homes and to hold on to 
the American Dream.

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