Foreclosure rescue plan poised to pass Senate

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Foreclosure rescue plan poised to pass Senate

Story Created: Jul 11, 2008 at 9:51 AM EST

Story Updated: Jul 11, 2008 at 9:51 AM EST

WASHINGTON (AP) - A mortgage rescue plan is headed for Senate passage Friday, but it's anything but a done deal.

Despite broad bipartisan support, the bill is facing a rewrite in the House and a veto threat from President Bush.

The package would authorize 300-billion dollars in new government-backed loans for strugglinging homeowners. It also includes billions in tax breaks and a nearly $4 billion provision to buy-up and rehabilitate foreclosed homes.

Key players are planning for a week of intense negotiations over House concerns about the Senate version.

One bone of contention is the home buy-up provision.

Conservative "Blue Dog" Democrats say that needs to be balanced by tax hikes or spending cuts elsewhere.

And the White House also objects, calling that a bailout for the lenders who helped cause the mortgage meltdown in the first place.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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