AFFIL and Partners Support S. 61
An essential part of the Obama Administration plan supports congressional action to permit distressed homeowners to seek home loan modifications in bankruptcy court. That is the same option that is permitted today for virtually every other type of debt in both consumer and business bankruptcy cases. Legislation to accomplish this critical part of the plan, S. 61 (“Helping Families Save Their Homes in Bankruptcy Act”), will be considered soon by the full Senate. Just last week, the House of Representatives, in a bipartisan vote, approved a companion measure (H.R. 1106). A key provision of both measures: allowing for judicial mortgage
modification. This will be the most reliable way to encourage loan servicers to offer sustainable mortgage modifications outside of court.
We are writing today to reiterate our support for this legislation. S. 61 represents a valuable tool, at no cost whatsoever to the taxpayer, for stopping foreclosures and stabilizing the economy by providing homeowners access to court-supervised mortgage modifications.