WASHINGTON — At a press conference today, U.S. Senators Debbie Stabenow (D-MI), Jack Reed (D-RI), and Amy Klobuchar (D-MN), along with Michael Calhoun, President of the Center for Responsible lending, Pat Combs, President of the National Association of Realtors, and Debra Jones, President of the Detroit Alliance for Fair Banking, discussed the growing foreclosure crisis in America and efforts to help homeowners.

Prior to the press conference, the Democratic Steering and Outreach Committee, chaired by Senator Stabenow, held a meeting where Senators, representatives of the housing industry and numerous advocate groups met to discuss the scope of the housing crisis and potential solutions to address families struggling to keep their homes.

“Foreclosure is an evil plague in our communities that came to steal, kill and destroy the dream of homeownership,” said Deborah L. Jones, President of the Detroit Alliance for Fair Banking. “Wayne County, Michigan, had the fifth highest foreclosure filings rate for metropolitan areas- equaling one filing for every 113 households. For many, the American Dream has died. Industry leaders, consumers and community groups must collaborate to address the crisis that is facing our communities. We must establish a solid solution to resurrect these dreams.”

Senator Stabenow has authored legislation to assist families who find themselves struggling to make their mortgage payments, while at the same time, seeing their home value declining. The Mortgage Relief Act would change current law that forces individuals to pay an income tax when they have sold their home for less than the outstanding mortgage and had the remaining balance forgiven. Currently, the IRS taxes any loan forgiveness as “income”. The bill would relieve families of a tax burden when their lender forgives part of the mortgage on a principal residence.

“With more than 635,000 foreclosure notices being filed nationally in the last three months alone, middle class families across Michigan and across the country are hurting and being unfairly taxed by the IRS,” said Stabenow. “I will continue to work with my colleagues to prevent additional, unfair economic hardships in the lives of those who find themselves in truly unfortunate circumstances.”