What's status of H.R 1106 ?

[00zx6r]

Helping Families Save Their Homes Act of 2009 has anyone heard if it has passed?

[snapple candy]

I have talked with the House Committee on Financial Services and was referred to thomas.loc.gov for more detail on this. It (HR 1106) was presented and on 2/26 it was left as "unfinished business". For now it appears to have been stalled so I am told by the finance committee. Obviously allowing BK judges to reduce principal on mortgages possibly allowing many of us to avoid losing our homes is not a popular idea for many especially the lenders. I think it is time for us all to stand up and write our representatives in mass and encourage them to vote for HR 1106.

If you follow this link, it will list detail of bill, as well as a function to let your legislative reps know how you feel. House Financial Services Committee

[melanieg]

Thanks for the link Snapple...Also, what I read about this bill stated that it has now been sent to "committee".....which most bills do not ever get out of. Hopefully that won't happen with this bill. I have been emailing my representatives on this...FYI... No Republicans voted for this bill. So all GOP out there, as much as it pains me to say :-) I think the Dems have this one right! I actually watched some of the debate on this and the Republicans are ****bent on protecting the lenders! The Dems actually "get it" IMHO

[snapple candy]

Interesting, no republicans voted for this although I am not surprised since they tend to think less socially in general and represent the wealthy values (not meant as a slam to you republicans). Unless this issue about devalued principal is addressed, more people will just end up walking from their homes causing the crisis to worsen. Its a lose-lose for both sides including the investors. After 9 mths of dealing with WAMU, I see no compromise except for maybe a decent interest rate to some (not being offered to many of those achieving modifications) but not decent terms as they originally offered me, and all kinds of excessive fees added on. On Consumer BK attorneys web site, they post good data on how few achieving (45%) modification even get a lower payment or achieve a substainable solution.Its a bandaid on a severed artery and destined to fail. If these lenders would just compromise even 25% to 50% on principal reductions and offer decent interest rates (the same to everyone and not take advantage of the desperate), having both sides swallow a portion of the losses, we might get somewhere and start turning this thing around. The lenders are not stepping up to the plate to volunteer to take a partial loss, they would rather take a total loss by letting a home go into foreclosure instead and putting a family out on the street.Unless someone forces the lenders to step up to the plate like BK judges and reduce principal balances, the consumer will be left out in the dark fending for themselves.It does not make sense to me the lenders/investors would rather take a 100% loss by choice holding a devalued property that may deteriorate over period of time rather than a 25-50% loss thru negotiation with homeowners.I am wondering what others think about this question.

[00zx6r]

I am total agreed with your think snapple candy. Without principle reduction and decent interest rate there will be more people walk away from their home.
In our situation our house (IE) is worth about 40% of what we owe the lenders now and without principle reduction it would take up to 10 years to break it even and I am not talking about having the equity in the house, I rather take a hit on my FICO now and rebuilding it. Missing 2 payments it dropped 70 points already.

[snapple candy]

Yeah. The math just doesn't pencil out. Why break my back working 3 jobs to pour money down a black hole when it may take 5-10 years to even break even again? It makes no sense to do so especially if you have hardships beyond your control.
I dont want to walk away from my home (I put 75K down 3 years ago-150K upside down) but after 9mths getting jerked around (and lots of stress) by WAMU and they only want to take more advantage of me, I am ready to throw in the towel. I have filed complaints for deceptive and predatory practices, faxed my legislators, and much more. Expect the worst, hope for the best. I am not holding my breath for the govt. to achieve anything positive.
My fico is so tanked, I dont care anymore. It is better to face reality, downsize and rebuild. It is best not to be too emotionally attached to our homes.The lenders are preying on those that are. Better to walk away than to be walked on.
Without compromise, principal reductions and at least decent interest rates for ALL, it will continue to remain one-sided.I decided today not to make my payment on my 2nd. I think it is a lost cause.I forever remain optimistic and that am I am wrong about this.

[00zx6r]

Looks like to has passed.
GovTrack: House Vote On Passage: H.R. 1106: Helping Families Save Their Homes Act of 2009
I will try to contact BK lawyer to disscuss about the guideline.

[snapple candy]

Yes, I believe you are right.My question is can it be helpful in only Chapter 13?

[jhn_plsn]

Originally Posted by snapple candy

Yes, I believe you are right.My question is can it be helpful in only Chapter 13?

I would also like to know this.
Does one have to go with the ch 13 or will the judge decide how to handle it. A ch 7 sounds better, but then again I have never gone through it.

[snapple candy]

You would have to go thru (file) BK for judge to allow for a principal reduction. An attorney should be consulted to determine which is the best to file (7,1, 13) in your case and whether you can qualify to even do the reduction. Only a BK judge would be able to rule on this issue if passed.

Get an attorney consult (maybe more than 1) to find out your options.

[Moe Bedard]

the senate is going to be voting on a companion bill........in a few weeks from what I understand.............so that is a little confusing...........


H.R. 1106 - Summary: Helping Families Save Their Homes Act of 2009 (GovTrack.us)

[candice]

I thought HR1106 only passed the house and needs to pass the Senate. What if the Senate doesn't pass this.

[franklinco]

Originally Posted by candice

I thought HR1106 only passed the house and needs to pass the Senate. What if the Senate doesn't pass this.

It is going to a committee concerned with banking. The committee is more Democratic than Republican and also has Senator Dodd and Senator Sherrod Brown on it who supported s.2136 which had a similar purpose. It is my view that it should make it out of committee and to the full Senate. I have no idea as to how much of a stalling there will be in the senate if there was a filibuster to stall the legislation. I don't know if there will be 60 or more votes needed to prevent such a failure of senate action out of the total senators.
The legislation needs to have a lot of the diluting provisions canceled from the legislation which in effect would make this legislation extremely narrow in scope. If it does pass diluted as it is or more watered down, it would at least possibly help some out if they pass through the gauntlet of requirements for this legislation.
I hope it passes and is lessened from the watering down provisions added to the bill but since I have been concerned with getting HR 3609 though without results this legislation may be stalled allowing more foreclosures and intentional bank failures due to their rigidity against voluntary modification of the loans.
I'm glad that it passed the house. I am sad that a lot of obstacles were added to it which reduce its effectiveness. Simply striking section 1322(b)(2) where it states "other than a claim secured only by a security interest in real property that is the debtor’s principal residence" would be the most effective and just measure to remove the anti-modification clause which has highly been abused by home lenders who made loans of such poor underwriting standards.
So if you are wondering if the legislation will pass, at least it made it this far. I have lost a lot of respect for those in Congress who are supposed to be representative of those who live in their states which they represent and especially in my representative, Pat Tiberi who was even a Realtor prior to filling in the vacancy left by Fox News anchor John Kassich which held the seat prior to his election. I admire Maxine Waters of CA and Brad Miller of NC for their stance on the issues. I'm sure there are other worthy representatives but those two stand out from their actions.

[KATHYB]

I am in the process of "waiting" for the attorney I retained to file Chapter 13 on my behalf. I retained him in November.

I hear from him on a regular basis and today I spoke with his office. He scheduled my next appt in May. He is confident that HR 1106 will pass but it will be at least May before it is all settled and done.

If you can hang in there, please do. It will be worth it to all of us in this boat to wait this bill out till passing.

[KATHYB]

Has anyone heard anymore on HR1106?

[mtg2008]

Does anyone know any good BK attoney in orange county, CA? Thank you. I had bad experience with attoney before. I don't want to pay someone who just cares about money and screws me. Thank you.

[franklinco]

Originally Posted by mtg2008

Does anyone know any good BK attoney in orange county, CA? Thank you. I had bad experience with attoney before. I don't want to pay someone who just cares about money and screws me. Thank you.

I don't know of any out there but came across one in Riverside, CA called "Fransen and Molinaro" on a quick google search.
The one I am using in Columbus OH is moderate and does seem to get the needed documents filed. The most important thing for choosing one is their ability to get your plan approved for a reasonable fee, without a lot of trouble with dealings with the court, creditors and the like.
If this firm is any good or not, I don't know. Remember, the laws to protect lenders on primary residence addressed by HR 1106, S.61, HR 225 and HR 200 need to be put into law before lawyers can do anything on your home.
My selection on the search were because their goal online and the picture of older lawyers who should be versed in the law.

[franklinco]

Originally Posted by KATHYB

Has anyone heard anymore on HR1106?

There is a lot of activity for comments on the blog for HR 1106. There has not been further action in the committee it ended up being set aside in. As far as I know it is passed by the house but stuck in the committee that Dodd, Brown and other Senators are responsible for. I wrote Brown and he did reply, but sort of with if it gets to the full Senate.

[snapple candy]

mtg,
Did you find a BK attorney in so cal yet?

[chazkeepahoma]

News flash!!!
We're screwed again! Go to Yahoo Finance home page, top stories,(Banks,Lawyers narrow cramdown terms). It seems like they are going to settle on a bill next week, watered down with no chance of principle reduction. The senators will listen to the banks but not us!!! I'm about ready to blow a gasket!!!!!!!!!!!!!!!!!

[franklinco]

KATHYB,

Thanks for the link regarding the second degree ammendment being thrown out by Congresspersons Zoe Lofgren, Ellen Tauscher and Dennis Cardoza.

It is not a surprise that the concentration of changes are against helping those with poorly structured loans and nothing is changed with the cost to taxpayer provisions added to this bill vs. HR 200/S.61.

The more that these bankster supported Congresspersons throw limitations into this bill, the more that I am in favor of just removing all provisions from this legislation other than the direct strikeout of Section 1322(b)(2) which a simple strikeout of the offending exception granted lenders on loans on primary residences are presently granted over other classes of creditors.
Congress created these problems that HR 1728 aims at preventing. HR 225 also from works of Brad Miller from NC submitted legislation to help clear the aftermath from lenders working in an environment where poorly underwritten, heavily insured against default loans were created.
I believe HR 1106 is so puddled with garbage that its ineffectiveness once proposed would give banksters rise to declare the legislation is ineffective as their monetary input and language entries have declared.
Drop the provision in bold below.
modify the rights of holders of secured claims, other than a claim secured only by a security interest in real property that is the debtor’s principal residence,
Let us get effective and simple corrections applied to our laws and remove doublespeak and effectively canceling provisions from being added and muddying our legislation.
Pollutitions added the pollution to the laws. Tax the offending lawmakers with a carbon tax, especially the shady Chris Dodd who should be ran out of town on a rail by sunset.

[franklinco]

The Senate will soon be taking up an important housing bill that will assist my bank in serving our customers by making it easier for servicers to modify loan agreements, make the Hope of Homeowners Program more accessible and provide the Federal Deposit Insurance Corporation (FDIC) with a much needed increase in their borrowing authority.

NOT: If you believe that, you are totally living in a land of fantasy. H4H is totally disregarded in its help for home-owners. Servicers have not been forthright with modifying loans, especially "HLS" for servicing "First Franklin" Originated loans.

., an amendment will be offered to the bill that would allow bankruptcy judges, for the first time, to alter the terms of a mortgage on a principal residence. This amendment is ultimately anti-consumer and punishes thousands of banks, many of whom never made a subprime loan. ...

NOT: These awful lenders created the anti-consumer lending instruments. It is extremely important that their ridiculous claims to "anti-consumer" legislation which is legislation which is actually pro-consumer since it removes from the market the inflated appraised loans and the predatory loans, thus detoxifying the loans so people can afford reasonable payments salvage the cash flow to lend to others.
Humbug regarding the punishing banks who never made bad subprime loans. A market rate loan with a modest risk premium? How would that interfere with upright lending? It would not of course. Something strangely Orwellian here in their illogical inversion of facts.

.... will add significant risk and uncertainty to an already unstable housing market, ...

What happens to rates for future loans when banks foreclose, take extreme writedowns? Do rates go lower for future home-owners? I highly doubt it would not be passed on to future lending. On the other hand, reduced margin and performing loans should positively help keep future loans to home-owners lower than heavy foreclosures would.

As a home-owner who was put into one of these not so easily repaid loans which could go up well above the income of families generate, these loans need made into loans people can truly afford to repay.

I am counting on your vote in support of removing the anti-modification provision which lenders made which are called silly names like toxic loans, legacy loans. They are bad loans which unless they can be modified will make our nation into a third world nation further than it has already sank into with poorly regulated lending standards, unscrupulous lending practices and a provision in our laws which unjustifiable protects their ability to continue to inflict extreme hardship on our US citizens which our Senators are obligated to protect with laws that keep families in homes and unfair business practices from taking place without an ability to correct their bad marketing of hazardous products.

[KATHYB]

Well, my son and daughter in law spoke with the attorney today. We have the same attorney. He now feels that HR1106 will NOT pass. He told them something about it being combined with another bill and being watered down. The details from my son were sketchy. I meet with the attorney middle of May so I will know more then.

I just know that the bill as it was presented with fail. My question now is, what do I do with a loan of $175,000.00 on a home valued now at $130,000.00? And in 2011 the interest will adjust.

My loan is with Countrywide... of course. I did a modification in 10/08 under the assumption that they would work to reduce the interest and put the loan into a fixed interest rate. That was the pitch I was told. Turned out all The Hope Team did was put the one payment behind on the end of the loan. Same interest rate and still adjustable in 2011. I complained that was NOT what I was told would happen. Countrywide proceeded to tell me that they are not doing anything with anyone's adjustable mortgage until it is within 4 months of adjusting. AND...since I went through The Hope Team in 10/08, I have to wait a YEAR before they would even look at the loan again.

I am EXTREMELY angry and EXTREMELY worried. I feel deceived by Countrywide.

Before anyone says that I got myself into this on my own, I want to say I wish I never had to have touched my loan to begin with. But when your partner of 18 yrs leaves you from one day to the next, I did what I had to do. New roof because of leaks, new AC so I could afford to pay utilities that WERE running at $498.00 a month because of a 30 year old unit. ETC...

Regrets.. yes. But I never saw the drop in equity coming or things to EVER be this bad. I was assured by my lender that there would be no problem in locking into a fixed by the time the loan adjusted.

[jhn_plsn]

KathyB, sorry to hear of your situation. I wish I could give you some advice but I am no expert. I do know that in some states if your loan is the purchase loan it is considered non-recoarse and you could do a cash for keys and start over elsewhere. Not what you want to hear but is food for thought. Then CW could not persue you for any shortfalls.

If H.R.1106 or something similar does not pass with the consumer protection in it we all will end up paying cash only for most purchases and the economy will take 3 times as long to recover as it did when Carter was in office. Theres something to look forward to. High energy cost, high food cost, high everything. The small guy gets ****** again, and again, and again.

I am pissed to no end.

The soapbox is open to someone else now.

[franklinco]

Hr 1106 already is a combo bill resulting from the addition of safe harbor for servicers, changes to the H4H program, changes in FDIC.

As far as I can detect from the opposition, American Bankers Association, the bill will go to vote the week starting April 27th with the modification of home loans on primary residence in full effect.

It would not surprise me if the Congress did add more issues to this bill and dilute the original intention of this bill into little value. I hope the bill does not get destroyed further.