House may approve Cramdown Bill as early as March 5
Update: This bill was defeated in the Senate.
Great news! The House approved today, March 5, the cramdown bill in a 234 - 191 vote.
It’s important that you realize that you don’t have to wait to file for bankruptcy to enjoy the fruits of this bill —from now on, you can negotiate your loan modification with your mortgage servicer with a dramatically improved leverage, which will reach its full potential when it’s passed into law. It shouldn’t be long, both the House and Senate bills were initiated simultaneously.
So, let’s keep on calling our senators for their vote to make this bill a law: (202) 224 - 3121.
More good news!
According to this Bloomberg article:
The House of Representatives may vote as early as March 5 on the amended legislation, which would let federal judges lengthen loan terms, cut principal payments and reduce interest rates for borrowers in Chapter 13 bankruptcy protection, House Majority Leader Steny Hoyer, a Maryland Democrat, told reporters today.
Democratic leaders, who had pulled the bill from consideration, embraced an alternative plan pushed by the New Democrat Coalition, which calls itself a group of moderate lawmakers. The bill would require borrowers to seek loan modifications from their banks before they could qualify to amend their mortgage terms through bankruptcy protection.
It appears that this piece of legislation will be in total concert with the Homeowner Affordability and Stability Plan, which was launched today.
So, I insist, if you are facing bankruptcy or foreclosure, you must comply with filing the documents required by your service lender to apply for a loan modification, in order to obtain the full benefits of this program, even if your bank dismisses your petition for the loan modification.