Help for Homeowners Now! Stand Up and Be Heard on S. 61
There’s a foreclosure crisis, in case you didn’t notice.
Maybe you haven’t seen your neighborhood become a ghost town yet, but you’ve probably noticed your home is not worth what it used to be–it may not even be worth the money you owe on your mortgage.
The crisis affects us all.
Help for Homeowners
No one plans to become a distressed homeowner.
There’s a bill circulating in Washington and it could help many homeowners keep their homes.
It’s been passed in the House and is now being brought for a vote in the Senate, but some Senators are resisting the bill, essentially slapping struggling homeowners in the face–thanks to the diligent work of banking industry lobbyists.
Surprise: The Banking Industry Doesn’t Want it Passed
The banking industry lobby doesn’t care if you get to keep your home. In fact, it would probably rather you lose it than damage the mortgage industry’s bottom line.
Somehow, the industry believes it would lose more money by allowing homeowners to pay their mortgages than by continuing the expensive process of foreclosing on the homes and attempting to resell them in a bottomed-out and flooded market.
But S. 61, the bill that the lobby is fighting so hard to bury, would correct a flaw in the U.S. Bankruptcy Code and allow bankruptcy judges to modify mortgages and help homeowners.
What the Bill Would Do for Homeowners
The bill would help millions of homeowners, even those who never file bankruptcy.
The thing is, bankruptcy courts have the power to modify secured debts – with one major exception: they can’t modify home mortgages. This bill would correct that; however, if the lobby has its way, it won’t see the light of day.
Breaking Down this Housing Bill
If bankruptcy judges could reduce the balance of and reduce the interest on home loans, many people would not lose their homes to foreclosure.
If the mortgage company knew a distressed homeowner could file bankruptcy and have the terms of the loan modified, they would likely be more willing to negotiate and restructure loans without the homeowner filing bankruptcy.
Bottom line: The industry does not want to be forced into playing nice with homeowners.
If you think it would be a good idea for more families to stay in their homes, consider letting your Senator know that you support S. 61.
The voices of the lobbyists are being heard loud and clear; now it’s time for Americans to speak up on the issue.
You Can Make a Difference–Contact Your Senator
Find contact information for your Senator and let them know where you stand.
You can also call 877-354-4958 to voice your opinion.
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