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SENATE LIKELY TO REVISIT BANKRUPTCY CRAMDOWN ON PRINCIPAL RESIDENCE AGAIN!

By R. Grace Rodriguez, Esq.

Recently received this juicy bit of news!

July 16, 2009

NOTICE OF SUBCOMMITTEE HEARING
The Senate Committee on the Judiciary, Subcommittee on Administrative Oversight and the Courts will hold a hearing entitled " The Worsening Foreclosure Crisis: Is It Time to Reconsider Bankruptcy Reform?" on Thursday, July 23, 2009 at 10:00 a.m. in Room 226 of the Senate Dirksen Office Building.

Chairman Whitehouse will preside.
By order of the Chairman

Now that the Democrats control a majority of the Senate perhaps it will be possible that the Senate will reconsider its ill-conceived rejection of the Cramdown provisions of the Helping Families Save Their Homes Act signed by President Obama on May 20, 2009. While the Act was a significant step towards reforming mortgage credit markets during these difficult financial times, it didn't go far enough to stem the unyielding tide of foreclosures.

Recent reports show that it is not the ability of most homeowners to pay for their homes that is preventing them paying their mortgages. Rather, it is the lack of motivation many homeowners have to pay a mortgage payment on a home that is now worth almost half of the amount owed on the loan. Many homeowners are opting to walk away from their homes.

Please write to your Senator today to ask them to reconsider reforming the bankruptcy law to allow borrowers to reduce the balance on the first mortgage loans to fair market value. By doing so, it would make it feasible and affordable for American families to keep their homes.

Full post as published by The Law of Second Chances on July 20, 2009 (boomark / email).