Amid the nationwide screaming about the AIG bonuses, U.S. Senators have decided to let a good idea simmer on the back burner. As discussed here, the House recently passed a bill that would allow bankruptcy judges to modify terms of loans on primary residences.

It’s a crucial piece of legislation, long overdue.

As reported March 23 at washingtonindependent.com: “Without government help, 2.4 million homeowners will lose their homes to foreclosure this year, according to the Center for Responsible Lending (CRL), an advocacy group.

“Every 13 seconds another family receives notice a lender’s foreclosing on their home. That means  6,600 additional foreclosures start every day at a time foreclosure rates already are four times normal levels. A week ago, the number of families forced into foreclosure since January 1 surpassed 500,000.”

Every 13 seconds… Sure, we’re often reminded that most folks have been able to keep their payments current (at what levels of sacrifice, though, no one seems to be investigating), and maybe many homeowners who got into trouble were trying to flip houses, or maybe they refinanced and went on a cruise.

Still… every 13 seconds. Read the rest of this entry »

New legislation aimed at the major roadblock to helping distressed homeowners passed the House March 5, when the Helping Families Save Their Homes Act of 2009 was approved via a vote of 234-191. If it gets Senate approval, bankruptcy judges will gain the power to modify terms of loans for some homeowners–an ability already in place for commercial property and nonessentials such as vacation homes, yachts and snowmobiles.

Support for the measure in the Senate is unknown, with various news sources citing low regard among Senate GOP leaders as well as a few Democrats, while others indicate the necessary votes may already be lined up. For example, an AP story on the NPR Web site says of the bill, “It faces a tough road in the Senate, where Republicans and some Democrats oppose the idea.”

But a Marketwatch account, while acknowledging that Senate support “is unclear,” also reports that “Senate Majority leader Harry Reid, D-Nevada, said he believes he has the votes to confirm passage. The measure will likely require the support of a few GOP Senators. A spokeswoman for Sen. Mel Martinez, R-Fla., said he is considering the legislation. Like many other states, Florida has an unusually large number of troubled homeowners and foreclosures.” Read the rest of this entry »