Nevada foreclosures making housing personal for Reid

The housing crisis has hit Nevada harder than any other state, creating a highly personal issue for Senate Majority Leader Harry Reid (D-Nev.).

Reid is mindful of the number of foreclosures in his state, which he said was the No. 1 topic on his constituents’ minds during the congressional recess.

{mosads}“There are the personal stories that are just heartbreaking, like renters who had no idea the home they were renting was being foreclosed upon until being told they have a few days to leave,” he said in an e-mailed statement to The Hill.

In February alone, one out of every 165 homes in Nevada was in foreclosure. The 3.4 percent rate in Reid’s state is more than three times the national average of one foreclosure for every 557 houses, according to RealtyTrac, a California-based company that collects and compares foreclosure data in the U.S.

The tough times could lead to problems for Reid, who has already seen his approval ratings fall. Although he doesn’t face voters for reelection until 2010, a Las Vegas Review-Journal poll in October put his approval numbers at 32 percent — a fairly deep hole out of which he will have to climb.

Across the aisle, Senate Minority Leader Mitch McConnell (R-Ky.) could also face some local pressure to move on a housing bill.

According to RealtyTrac, February foreclosure filings in the Bluegrass State were quite low, with only one for every 3,919 households. Still, that’s 23.5 percent higher than in 2006 and 77 percent higher than in 2005.

McConnell is up for reelection this fall, and while his approval ratings dwarf Reid’s, they are far from stellar. A Survey-USA poll in February put him at a 52 percent approval rating. Just six months ago, his disapproval rating of 47 percent actually exceeded his approval rating of 44 percent.

On Monday, Reid and McConnell were negotiating on what amendments could be offered to the Foreclosures Prevention Act, which stalled in a 48-46 procedural vote on Feb. 28. Reid wants amendments limited to housing issues, while Republicans have complained that Reid is trying to pick which amendments they can offer.

Reid argues that homeowners facing foreclosure are more deserving of help than are the executives of Bear Stearns, an investment bank aided by the Federal Reserve last month.

In a letter sent Friday to McConnell, Reid said, “the federal government has provided assistance to Wall Street; now Congress must turn its attention to Main Street.”

In a statement on the floor Monday, McConnell called on Democrats to work with their Republican counterparts instead of trying to score political points.

“In all these areas, the Democratic leadership has an option. It can work with Republicans to deliver help to the American people. Or it can follow the partisan path that views every piece of legislation as an opportunity not to solve problems but to position itself for the next election,” he said.

Most Senate Republicans voted against moving forward with the bill in February because of a provision opposed by the banking lobby and President Bush that would allow bankruptcy judges to modify mortgages for people who are at risk of losing their homes. Republicans contended the provision would drive up overall borrowing costs.

Reid and other Democratic leaders on Monday tried to escalate pressure on Republicans to allow the bill to proceed.

“We are confident that we have to do something. A hands-off approach … simply doesn’t work,” Reid said during a Monday press call.

If cloture is not invoked, Reid will continue to press for passage of the measure, and might move to a separate bill being crafted by Senate Banking Committee Chairman Chris Dodd (D-Conn.), or the Federal Housing Administration bill, according to Reid spokesman Jim Manley.

“If we can’t proceed on this, we’re going to stay on housing,” Reid said.

Republicans have been reluctant to embrace a larger government role in addressing the housing market, and as recently as last week McConnell told an audience in Hazard, Ky. that he prefers the idea of giving tax incentives to trigger more housing purchases.

Manu Raju contributed to this article.