Mortgage Modification Amendment Would Have Helped 385,000 California Homeowners Facing Foreclosure
Washington, DC – May 1, 2009 – (RealEstateRama) — – U.S. Senator Barbara Boxer (D-CA) today spoke on the Senate floor in favor of an amendment that would have helped millions of at-risk homeowners avoid foreclosure by allowing bankruptcy judges to modify mortgage terms for primary residences.
Currently, bankruptcy judges are able to modify terms on loans for vacation homes, automobiles and other assets. The measure, sponsored by Senator Dick Durbin (D-IL), failed by a vote of 45 to 51.
Moody’s estimates that the amendment could have saved 385,039 homes in California and nearly 1.7 million homes nationwide.
Excerpts from Senator Boxer’s floor speech follow:
“One year ago when I stood on this floor we were expecting then, two million homes to be lost to foreclosure over the course of the crisis. Now that number is expected to be over eight million homes. Mr. President, if we turn our back on the Durbin amendment what we are essentially saying is, ‘Oh, the status quo is fine.’ ”
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“I do not understand how anyone could vote no on this except if they are dancing to the tune of the banks.”
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“I have met children who have said they cry themselves to sleep every night because they think they are going to lose their home, and their home is their castle. Now, for us to turn our back on the Durbin amendment … would be a travesty of justice for these children.” *** “We are saving vacation homes. We are saving automobiles. We are saving all these other assets, which a bankruptcy judge can, in fact, restructure. But the main thing we should be saving, the residential home, is not allowed to be brought up in bankruptcy…” ***
“I am here filled with hope that we can send a message today to the American people that we stand on the side of our families, and yes, we will work with the banks and try to get them to do the right thing.”
