Bankruptcy Attorneys Come to Washington With a Plan to Fix the Mortgage Foreclosure Crisis

09 Feb Bankruptcy Attorneys Come to Washington With a Plan to Fix the Mortgage Foreclosure Crisis

140 consumer bankruptcy attorneys from 32 states came to Washington D.C. today to tell their elected representatives in Congress that the foreclosure crisis is getting worse everyday in their communities. They didn’t just bring bad news, however. They have a solution that will save over 800,000 homes from foreclosure this year alone.

The “Helping Families Save Their Homes in Bankruptcy Act of 2009” ispresently being discussed in Congress will help stem the tide of what is now 46,000 foreclosures in America EACH WEEK! That breaks down to over 6,600 families losing their homes every day.

For the past 18 months, Congress has been well aware of this problem. We have all watched as the housing crisis developed into a massive worldwide financial collapse. So far all that has been done by Congress is to try to throw massive amounts of money at the problem. It has not worked, as foreclosures are increasing, not decreasing.

The mortgage industry has said that they will start offering voluntary mortgage modifications. To a small extent they have, but it has not worked. Until they offer meaningful mortgage modification, which will decrease the principal of the loans to the true current value of the property, no voluntary mortgage modification will work.

The bill currently being discussed in Congress to modify mortgages in Chapter 13 bankruptcy cases is the only idea on the table that directly addresses the problem and will cost taxpayers 0 billion dollars. That is, it will cost taxpayers nothing. Nada.

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. In the time it took me to write this, another 68 homes were foreclosed on in this country.

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Peter Orville is a bankruptcy lawyer in Binghamton, located in the Southern Tier of New York. He is a member and New York co-chair of the National Association of Consumer Bankruptcy Attorneys.
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