Many people and organizations agree that families should be able to save their homes through Chapter 13 Bankruptcy
February 01, 2010
Topic: Chapter 13 Bankruptcy
President Obama, Vice President Biden, NY City Mayor Michael Bloomberg, former Republican Secretary of Housing and Urban Affairs Jack Kemp, Citigroup, the National Association of Home Builders and the AARP all agree that the legislation to help families save their homes through Chapter 13 Bankruptcy should be passed as soon as possible.
So do I. Many others, including over 170 other organizations such as the National Conference of Bankruptcy Judges, the National Association of Chapter 13 Trustees, the U.S. Conference of Mayors and 22 state Attorney Generals have put themselves on the list of supporters of this important legislation which will allow judicial modification of home mortgages.
Unlike other items being brought to Congress, this piece of legislation will cost taxpayers absolutely nothing. The Bankruptcy Courts are already in place and can handle the expected increase in bankruptcy filings.
Despite being pressured to offer meaningful mortgage modification, the mortgage industry has not offered truly workable plans to many struggling homeowners. This legislation, however, gives families a real chance at keeping their homes by making their mortgages affordable.
On Thursday, February 26, H.R. 1106 entitled "To Prevent Mortgage Foreclosures and Enhance Mortgage Credit Availability" will be brought to a vote on the floor of the U.S. House of Representatives. The bill includes provisions that would allow bankruptcy judges to write down the principal and interest rate of loans for people whose mortgages are higher than the value of their homes. It also would allow judges to extend the life of such loans for terms of up to 40 years.
Earlier this month, I joined with 140 other consumer bankruptcy attorneys from 30 states in Washington D.C. to tell our representatives in Congress that the foreclosure crisis is getting worse everyday. We told our Congressional reps that the legislation we were supporting would save over 800,000 homes from foreclosure this year alone.
Right now, there are 46,000 foreclosures in America EACH WEEK! That breaks down to over 6,600 families losing their homes every day. The mortgage industry has claimed that they are offering voluntary mortgage modifications. Although they have made offers to some homeowners, their efforts to date have not worked. Until they offer meaningful mortgage modification, which will decrease the principal of the loans to the true current value of the property, the voluntary mortgage modification will work.
If Congress wants to show their constituents that they are really trying to work in their interests, they will pass this bill without further delay. This law, when enacted, will be a major part of the answer to the mortgage crisis, the housing crisis, and the overall financial crisis that began with the irresponsible and greedy lending practices by the very industry that is now fighting meaningful solutions. Don't let your representatives in Washington be fooled. Let them know how you feel on this issue.
In the time it took me to write this, another 68 homes were foreclosed on in this country.
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February 01, 2010
Many people and organizations agree that families should be able to save their homes through Chapter 13 Bankruptcy
