Mortgage Lobbyists Shut Down Bankruptcy Vote

As we announced earlier this week, the House of Representatives were scheduled to vote today on the bankruptcy reform bill that would have allowed homeowners facing foreclosure to modify their mortgage in bankruptcy. But according to an article in the Star-Telegram, powerful mortgage lobbyists have welded their clout and convinced House Democratic leaders to abruptly cancel today’s scheduled vote on the bankruptcy bill.

The article said:

It (the bankruptcy bill) hit a snag after a group of moderates expressed concerns in a closed-door meeting of House Democrats about how the bill would affect homeowners who are still struggling to make their mortgage payments. The banking industry has lobbied hard against the measure, mounting a successful multimillion-dollar effort last year to kill it. The House is debating the measure and leaders hope to reschedule votes for next week.

Are we going to allow the powerful banking industry to kill homeowner’s chance to avoid foreclosures again? What has happened since 2008? More foreclosures and more homeowners failing behind on their toxic mortgage payments. More job losses that make it impossible for many homeowners to pay their mortgage and all of the other mounting debt facing them.

Homeowners facing foreclosure do not deserve to be shut out of the legislative process by the powerful mortgage lobbyist. The fact that a vote on this bill was delayed is a slap in the face of all those homeowners who are literally days away from losing their home to foreclosure. Many other types of secured debt can be modified in bankruptcy, why not ordinary homeowners who are facing foreclosure?

These homeowners are not trying to hold on to luxury vehicles, yachts, planes and exotic time share vacation condos. These homeowners facing foreclosure are fighting for a place to live, their primary residence. We must allow bankruptcy courts to help these homeowners facing foreclosure, they same way we allow it to help corporations such as the bankers who are withholding this valuable resource from those who need it the most.