How to Make Your Voice Heard in Getting Principal Reduction Made Law

Thank You STeven Kop for staying on top of this. All this bill does is level the playing field. Large loans in Chapter 11 can be stripped down to their real value but not so for the little guy who just has a house. It’s one more step in the right direction.

This bill will allow an Amendment to be added to the original House Bill enabling bankruptcy judges the power to grant loan modifications (aka mortgage cram downs and strip downs) in an effort to help unemployment consumers stay in their homes. The effect the country is experiencing due to the rapid rate of foreclosures is causing the immediate necessity to pass this Bill.

Take a step. Send a letter like the sampledrafted by Mr.Kop (see below).

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H.R. 4173, the Wall Street Reform and Consumer Protection Act will be considered by the full House of Representatives beginning this Wednesday, December 9th.

This bill will allow an Amendment to be added to the original House Bill enabling bankruptcy judges the power to grant loan modifications (aka mortgage cram downs and strip downs) in an effort to help unemployment consumers stay in their homes. The effect the country is experiencing due to the rapid rate of foreclosures is causing the immediate necessity to pass this Bill.

EXCERPT FROM ARTICLE PUBLISHED BY THE AMERICAN BANKRUPTCY INSTITUTE

House Judiciary Chairman John Conyers (D-Mich.) has submitted an amendment to the financial overhaul package that would allow a bankruptcy judge to modify the terms of a home mortgage, including reducing the principal, CongressDaily reported today. Fifty-four amendments were filed two hours before deadline submission yesterday, and the House Rules Committee will meet today to consider the parameters for floor debate and again Wednesday before issuing its rule. Debate on the legislation could start as early as Wednesday.

LINKS FOR MORE INFORMATION:

Newsfeed from December 8, 2009
http://www.cnbc.com/id/29529573

Link to ABI Article (you need to login to read the entire article)
http://www.abiworld.org/ Click ONLINE RESOURCES then BANKRUPTCY HEADLINES

Newsfeed from April 30, 2009
http://www.foxnews.com/politics/2009/03/05/house-passes-mortgage-bankruptcy/

SAMPLE LETTER (OR EMAIL) TO YOUR REPRESENTATIVE:

I am writing to urge Rep. __________ to support the amendment to H.R. 4173 being offered by Reps. Conyers, Turner, Lofgren, Marshall and others that will help stabilize the housing market by helping families avoid foreclosure.

The foreclosure crisis continues to worsen and is preventing the economy from beginning its recovery. In 2009 alone there have been more than four million foreclosures, and it has been forecasted that unless something is done, there will be 14 million more over the next few years.

The Obama Administration’s Making Home Affordable plan has failed because it provides a carrot, but no stick. The stick was always intended to be judicial loan modifications.

Obviously, the banks and servicers are not going to modify loans voluntarily. We need judges to be able to modify the mortgages on primary residences for homeowners in bankruptcy.

If you voted yes on HR 1106 this past spring, this new amendment is identical to H.R. 1106. If you voted no on HR 1106: Please consider that in the intervening months, the foreclosure crisis has gotten much worse. If our economy is to recover, we need the housing market to stabilize before any recovery can take hold. Thank you.

Sincerely,
Your name here

HOW TO FIND YOUR HOUSE REPRESENTATIVE:

https://writerep.house.gov/writerep/welcome.shtml

Steven K. Kop
Attorney at Law

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