AARP: No Adequate Argument to Deny Bankruptcy Judges the Flexibility to Reduce Primary Mortgage Loans
May 1, 2009 - (RealEstateRama) — AARP responded to the failure of the Durbin amendment to S.89 to pass today with renewed determination to support Senator Durbin in his commitment to win bankruptcy judges the right to modify primary home mortgages as part of the bankruptcy process. Following is a statement from AARP Senior Vice President David Sloane:
Homeowners facing foreclosure lost out in the vote for bankruptcy reform today; it must be a temporary setback.
Today, one in five mortgages is underwater–homeowners have more debt than value in their homes. Older homeowners have seen property values plunge, their equity disappear and foreclosure signs go up around them. Reducing mortgage payments by lowering interest rates and extending loan terms, while helpful for some homeowners, fails to recognize a homeowner’s total indebtedness, and particularly the rising medical debts of older homeowners, and fails to respond to the serious loss of home equity.
There is no adequate argument to deny bankruptcy judges the flexibility to reduce primary mortgage loans for homeowners on the brink of disaster in the middle of this recession. Bankruptcy judges can already modify loans for owners of commercial properties, vacation homes, yachts, and family farms. As continuing job losses and ever higher medical costs force more people into bankruptcy, simple common sense demands improvement in the bankruptcy process to help them remain in their homes.
AARP commends Senator Durbin for his leadership on the issue, and will continue to support his efforts to help Americans facing foreclosure by expanding the flexibility of the bankruptcy judges to help them rebalance their unbearable debt burdens.
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WASHINGTON, D.C. - January 12, 2009 - (RealEstateRama) — In its first week in session, the 111th U.S. Congress saw a flurry of activity on bankruptcy issues, including three mortgage bankruptcy "cramdown" bills, and an early revision to one of those measures...
Comments
In April 2008 The Fidelity Information Services, a company I served for 26 years, actually stole my Job like bunch of thieves. As a result of that I had to apply for retirement to collect retirement benefits. Now, another greedy group of the same kind of people are trying to push us out of our little CONDO. AARP, we need your help.
Best regards!
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Thank you, AARP. AARP is emerging as the greatest advocate group to mid-lifers and beyond. I wrote my state representative and all did was reiterate that is was so far denied but they tried.
We are in this exact situation. We have filed bankruptcy this week (6/30/09), will still owe at least $60,000 in taxes and student loans, are making 1/3 of the income we’ve made for 25 years, our home is in foreclosure and valued at 40% lower than paid 4 years ago,
and will simply have no where to live and no money to pay for a place to even rent with 2 teenagers. The administration is ignoring this group and it’s lack of any relief.
Thank you for being on that wall.