S. 61 would amend title 11 of the United States Code with respect to modification of certain mortgages on principal residences.
Detailed Summary
Helping Families Save their Homes in Bankruptcy Act of 2009 - Amends federal bankruptcy law governing a Chapter 13 debtor (adjustment of debts of an individual with regular income). Excludes from computation of debts the secured or unsecured portions of: (1) debts secured by the debtor's principal residence if the current value of that residence is less than the secured debt limit; or (2) debts secured or formerly secured by debtor's principal residence that was either sold in foreclosure or surrendered to the creditor if the current value of such real property is less than the secured debt limit.
Declares the credit counseling requirement inapplicable to a Chapter 13 debtor who certifies that he or she has received notice that the holder of a claim secured by the debtor's principal residence may commence a foreclosure on the debtor's principal residence.
Requires the court to disallow a claim that is subject to any remedy for damages or rescission due to violations of state or federal consumer protection law, including the Truth in Lending Act, notwithstanding the prior entry of a foreclosure judgment.
Allows modification of the rights of claim holders, in the event of a foreclosure notice for a chapter 13 debtor, among other means by: (1) reducing a claim to equal the value of the debtor's interest in the residence securing such claim, and any adjustments to a related adjustable rate of interest; (2) waiving early repayment or prepayment penalties; and (3) extending the repayment period.
Denies debtor liability for certain fees and charges incurred while the bankruptcy case is pending and arising from a debt secured by the debtor's principal residence, unless the claim holder observes specified requirements.
Adds to conditions for court confirmation of a plan in bankruptcy that: (1) the holder of a claim secured by the debtor's principal residence retain the lien securing the claim until the later of the payment of such claim as reduced and modified or the discharge of a debtor from all debts; and (2) the plan modifies the claim in good faith.
Excludes from final discharge of a debtor from all debts: (1) any payments to claim holders whose rights are modified under this Act; and (2) any unpaid portion of a claim as reduced.
Status of the Legislation
Latest Major Action: 1/6/2009: Referred to Senate committee. Status: Read twice and referred to the Committee on the Judiciary.
Points in Favor
(Log in to edit the wiki and be the first to show why the bill should pass!)
Points Against
(Log in to edit the wiki and be the first to show why the bill should not pass!)
Visitor Comments
Jim
February 9, 2009, 7:19am (report abuse)Not pushing for the inclusion of this measure within the stimulus package sure did not add Republican support to HR1.
A flopped excuse from our new administration and a cowardly move on the bill's author.
Set aside HR 1 and pass this legislation first.
Lar
March 7, 2009, 5:57pm (report abuse)PASS THIS BILL ! Plain and simple. The sooner we get this bill passed , the sooner this economy can get a start to get back on track. Give Homeowners some real Hope and Ability to save their homes will be the beginning of the end of the current financial crisis. If we don\'t act soon this \"Recession\" is on its wat to become a Depression.
Jose
March 13, 2009, 8:19pm (report abuse)The Obama plan excludes the states with the highest foreclosure rates which are California, Florida, Arizon and Nevada, the majority of loans in these States do not meet the guideliness as specified under the Obama Plan.
1) must be fannie Mae and Freddie Mac loans
the majority of loand made in these states are not fannie or Freddir loans because the limit wre set much lower and the average home prices were much higher.
The Obama Plan has excluded all jumbo loans above $729,250 but these limits were only increased recently the limits which predominately existed were $417,000 thus punishing most of the taxpayers in these states , which are among the taxpayers that pay the most taxes in the country yet can not qualifiy for releif from any of the Obama, fha, of fannie and freedie programs.
S. 61 NOW!
March 22, 2009, 6:56pm (report abuse)HELP US! PLEASE PUSH THROUGH S.61 NOW...
S. 61 is consistent with the goal of offering assistance to homeowners making a good-faith effort to stay current on their mortgage payments. Judicial modification is a last resort, no-cost option to foreclosure that may keep as many as 1.8 million FAMILIES their homes, according to Credit Suisse. Granting bankruptcy judges this authority gives home mortgages on primary residences the same treatment as vacations homes, yachts or investment properties owned by wealthier borrowers. Why should those facing financial crises, whose homes are their most valued asset, by denied relief given to others?
Please support S. 61 and oppose efforts to weaken it. Thank you
Jim C
March 23, 2009, 7:17am (report abuse)I am expressing the need for the law to revise to allow modification on people's place of residence to the lawmakers in my scope. I also expressed the need to remove any cancellation of the potential benefits to get people into recovery mode as well as undo loan originator damage as best it can be accomplished. HR 1106 I believe is the new proposal coming out of committee on the house side. It passed but was set with cancellation of value the legislation will achieve if not filled with poor measures like amendment 1.
Kathy B.
March 25, 2009, 12:29pm (report abuse)EVERYONE SHOULD CONTACT SENATOR
BAYD'S OFFICE IN WASHINGTON, AND
LET HIM KNOW HE NEEDS TO STOP
HOLDING UP THE BILL S61. HE
NEEDS TO VOTE YES.
Jeanette J.
March 26, 2009, 9:19pm (report abuse)HELP US! PLEASE PUSH THROUGH S.61 NOW
John L.
March 27, 2009, 1:09am (report abuse)How soon will S61 come to a vote? I just called Barbara Boxer's office and let her know that she must support this bill. I fully agree that for us primary home owners that are 50% (not 20, 30, or 40%) upside down, this is the only solution. I have investigated many loan modification options, and they all seemed designed to hold the poor lender's hand while offering temporary relief to us homeowners.
Jim C
March 31, 2009, 9:14pm (report abuse)I would not expect this legislation to move past the judiciary committee which set aside this version of the legislation. I believe notifying the judiciary that this bill needs moved on through to the full Senate needs passed onto the committee.
Dan
April 8, 2009, 5:01pm (report abuse)Why has this bill died? An investor with mutiple homes can use bankruptcy as a tool to stay out of foreclosure, but a family with one home can not!!...Sounds like more of the GOV'S special treatment for fat cats.
Pass S61 NOW!!!
Ed B. - Guerneville, Ca
April 8, 2009, 5:22pm (report abuse)I believe banks, cc, and insurance companies have pulled all stops to lobby against this legislation, that is why it has apparently died in committee. You would expect a big ground swell of grass root support for this bill to rise up and convince elected reps to pass it immediately but that is not what's happening. What really bothers me is the ignorance of the American people. We are so preoccupied with blackberries, cell phones, lap tops and other electronic distractions that we can't be bothered with the important day to day functions of representative government. This bill may very well be the only hope I have of saving my home. I called and emailed both of my senators and have had no response. I sent multiple emails to friends to convince them to do the same with no response. There is nothing on TV, Newspapers and very little info online but when it dies you can bet people will scream bloody murder. How do you get folks to give a damn about themselves ... I don't know.
Guy
April 8, 2009, 9:45pm (report abuse)Ed
I notice a lot of statements saying "call your senators" and not just on this site. You'll have to excuse my ignorance here, but what is the email address to email or call for that matter our Senators? Is there a website which lists them all with their contact information?
Hal
April 12, 2009, 1:49pm (report abuse)This bill needs to be passed immediately. It will do more to spur the economy and save families than any other single action our Government has taken so far!
Tammy
April 15, 2009, 6:43am (report abuse)This is from Congress.org - I got right through to my senator.
Here is how you can help:
Call 1-877-354-4958 (between 9 a.m. - 6 p.m. Eastern time)
Enter your zip code and follow the instructions - you will be directed to your senators office.
What else should we be doing here? The bottom line is that passing this bill is the right thing to do. We need to do what makes sense and will help the most people.
kateb
April 16, 2009, 7:42pm (report abuse)GOOGLE ONLINE PETITION S61 AND
SIGN IT. VOTE YES FOR CRAM DOWN
GREEDY SENATORS.
Ferm
April 26, 2009, 12:50am (report abuse)To all you senators, Yes Rep & Dem's, sign the cramdown bill. Stop caring about the greedy banks, help the poor souls who may lose their homes because it is not worth what they paid, so they cannot sell it and cannot afford to walk away as their life savings was sunk into the home, like myself, house paid 275,000, worth 181,000, put down 70,0000, owe 205,000, would lose every dime I had if I walk away, so sign the darn H.R. 1106 bill, stop thinking about the darn rich banks, who rob us over and over with closing costs in the thoudands. Each time you refinance for a better rate, you get ripped off of thousands.
Rene
April 28, 2009, 9:56am (report abuse)Florida's situation is dire. Please sign S.61- We will never get out of this mess is this is not signed. Put aside the politics!
J Black
April 28, 2009, 1:57pm (report abuse)Sign this and get this country back on track!
Julia
April 29, 2009, 4:23am (report abuse)Pass this bill! The banks have been given more than enough help. The homeowners need the help that was promised to us. Mr. President do something! Show us that you deserved our vote!
Marge
May 1, 2009, 10:33am (report abuse)Unbelievable! They voted it down because of "12450 letters from ABA members"! What a joke our government is.
kateb
May 3, 2009, 6:40am (report abuse)THE SENATORS WHO VOTED AGAINST THIS
HAVE SOLD THEIR SOULS AND ELECTION
THE PEOPLE WANT CHANGE AND THE SENATORS DO NOT GET IT. THEY WILL
WHEN THEY LOSE THE NEXT ELECTION.
ALL THE BANKER MONEY CANNOT BUY
THEM VOTES. OBAMA SOLD OUT THE POOR
PEOPLE AT THIS MOMENT BEING THROWN
OUT ON THE STREET.
Gina Komuves-Barta
May 3, 2009, 11:46am (report abuse)I am absolutely DEVASTED that this bill did not pass! Where was Obama who, during his campaigning PROMISED would see that this would pass? I voted for him...will not make the same mistake again! Wall Street gets help, but the homeowner is kicked to the curb!Shame on all of you who voted against it! May YOU have many many sleepness nights as I have!
Guy
May 3, 2009, 3:28pm (report abuse)The influence bankers have in Washington is incredible. Im doing a short sale on my house. If I keep it I will ahve paid $300,000 in interest alone over the next 10 years and still be upside down. I dont get it. And now the Republicans are trying to "remake their image".....please huh. We the people can remake Congress and vote more of them out the next go round. As far as the Democrats who voted against it or abstained....vote against them as well in their respective primaries. The majority of homes will reset later this year during the second wave of foreclosures. Maybe they will rtake it up the bill again but Ive paid tens of thousands in Mortgage and have nothing to show for it. I'm letting my home go and start over. Maybe in a couple of years I will have repaired my credit back so I can purchas another home......maybe.
ARM recieient
May 5, 2009, 4:20pm (report abuse)The worst of the situation is that nothing will be left to take once everybody loses their jobs due to a poor economy. Money will be worthless and Somalia will be an exotic location compared to the ROW
Cecilia
May 14, 2009, 1:17am (report abuse)I did finally get a loan modification--after declaring Chapter 13 and then making the lender identify itself and prove that it owned my note--it wouldn't identify itself for 5 years while my business was in a state and federal disaster area, twice, and I then needed modification. I challenged the "perfection of interest" and "complete chain of (lawful)conveyance of deeds of trust and notes." The judge gave Goldman Sachs Group, Inc. and its various entities four extensions of time to prove ownership. GS never submitted one document and the judge was about to schedule an evidentiary hearing at which GS would lose its claim to the mortgage, etc. That's when its agents called and finally agreed to negotiate a real loan modification--and then dragged their feet another 6 months--lying to the judge about progress. The judge told them he'd caught them lying and scheduled an evidentiary hearing. About two weeks before it, they settled. We got what we'd been asking for for 5 solid years.
kunta
June 2, 2009, 3:09am (report abuse)Maybe, just maybe, the one needs to look beyond this housing crisis to see that someone people have bought our politicians. Our future as a nation of free people has been hijacked. Talking about broken promises, we have not seen anything just yet. The only way to get these bastards to listen is to have every single home owner in American stop paying the mortgage for 3 months, regardless of whether one has the money to pay or not. We exacerbate the problems and for these guys to do something for us for a change.