WE NEED THIS LEGISLATION! Wall Street Reform and Consumer Protection Act H.R. 4173

Once again we have the opportunity to allow our bankruptcy judges to modify home loans.  Earlier this year, this very important legislation was defeated in the Senate and rightfully, it is again presented to our House for a vote.  HOME LOANS are the only contracts bankruptcy judges can not modify!  Please work to have this changed! 

This is the letter that I sent out today to Congressman Garrett:

Later this week, the House of Representatives will begin debate on H.R. 4173, the "Wall Street Reform and Consumer Protection Act". During debate on the bill, an amendment that will help families avoid foreclosure and stay in their homes ---at no cost to taxpayers - will be offered by Representatives Conyers, Turner, Lofgren and others. Based on key provisions of H.R. 1106, the "Helping Families Save Their Homes Act", which passed the House on a bipartisan basis earlier this year, the amendment would allow bankruptcy judges to modify residential mortgages.


As you probably know, the government's voluntary mortgage modification program has fallen far short of its goals. The amendment being offered would be the inducement needed to step up and make meaningful mortgage modifications for the millions of struggling homeowners who are facing foreclosure.

The ongoing foreclosure crisis is having a negative effect on American families, our communities, and our economy. Experts warn that a rise in foreclosures next year and into 2011 could undermine the chances of a sustained economic recovery.

Residential mortgages are the only contract that bankruptcy judges cannot modify. This restriction--which does not apply to commercial real estate or vacation homes or any other type of loan --is costly to everyone, as property values continue to go down and spillover effects multiply.

If adopted, the mortgage modification amendment to H.R. 4173 would simply give bankruptcy judges the authority to modify unaffordable loans for families who are facing foreclosure and cannot obtain a voluntary modification. Such an approach would require no new tax dollars, and it would not excuse families from paying their mortgage.

I join with other concerned and struggling Americans in asking you to stand up for the families in our state and across the country by using your voice and your vote to give your full support to the amendment being offered by Representatives Conyers, Turner, Lofgren and Marshall. Thank you for your consideration.

Sincerely,
Michele Peters