Big changes for homeowners, builders, and those facing foreclosure may be affected by the Senate bill passed on Thursday. While several changes are expected before the bill is enacted, this overwhelmingly supported move will give the housing market much-needed assistance and should help to stabilize and revitalize the market. Several tax breaks and grants are included in this bill, such as:- Big tax breaks for homebuilders

– A $7,000 tax incentive for buying foreclosed properties

– Federal grants for buying and fixing abandoned homes

– Over $100 billion toward pre-foreclosure counseling and stronger loan disclosure requirements.

There is some opposition in the House, however; some believe that the bill favors homebuilders over the homeowners who are at risk of foreclosure. Some also argue that the bill uses taxpayer’s money to save lenders with foreclosed homes instead of the homeowners themselves.

What’s most interesting about this bill is that it will allow homeowners to refinance under FHA-backed loans to avoid foreclosure. Up to $10 billion in tax-free mortgage bonds will also help homeowners refinance their way out of the troublesome subprime loans. A similar move would grant nearly $400 billion in FHA-insured loans to provide a similar effect.

There is another side to the argument: the most recent proposed bill in the House wants tax breaks for first-time home buyers and speculators in low-income rentals. The Bush plan is also taking a different approach, focusing strictly on refinancing home loans over the multi-billion dollar surge that this bill would give to the housing market. Heated arguments are coming from every angle of this debate, and the best move might not come in the most obvious economic package.