Illinois Senator Dick Durbin is considering a different plan to help preserve "the American Dream."
Durbin Wednesday introduced the "Help Families Save Their Homes in Bankruptcy Act."
A recent report from the Center for Responsible Lending shows the nation's current foreclosure rate is not only costing families their homes, but is also expected to reduce the value of three–million neighboring homes by more than $17 billion.
Illinois Senator Dick Durbin wants to pass a bill that would allow bankruptcy judges to lower interest rates and adjust loans for families on the brink of losing their homes.
"This legislation can save the homes of about one out of every four facing foreclosure—about 600–thousand families who have nowhere else to turn but bankruptcy court," said Sen. Durbin.
A study released Wednesday shows Central Illinois foreclosures from 2005 to 2006 are highest in Peoria at about 22–hundred followed by McLean, Tazewell, and Marshall.
Becky Peterson is the President of the Peoria Area Association of Realtors and says those numbers appear high considering about 4,700 homes have been sold this year and Peoria does not follow national trends.
"As an association, we do not track foreclosures. But just from experience, I would say the Peoria market is very stable. We've had the same amount of foreclosures as we've had in the last two years," said Peterson.
Peterson says the majority of foreclosures come from job loss and subprime loans...and to avoid future problems, homebuyers should shop around.
"Talk to three lenders. If it sounds too good to be true, then it is."
The Peoria Area of Realtors says foreclosure does not have to be an option so long as you get the right help ahead of time.
That includes talking to your lender, calling your realtor, and finding out your home's worth.
"Don't leave any equity on the table."
Otherwise it could be lights out for your family's home.