Help Homeowners Level the Playing Field

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From YouTube:

This video features Joan Adams, who is living out of a Motel 6 in the suburbs of Orange County, California. She lost her home to foreclosure. “There’s no one out there to help”, Joan says. “Billions of dollars to the banks, yet we’re the ones that are homeless.”

From BraveNewFilms:

“We were trained to mislead borrowers,” says a mortgage broker in Orange County, California. “There were people who were club promoters or even drug dealers that found out it was more profitable to run a mortgage shop than to do whatever they were doing.”

On Tuesday, Congress will vote on whether or not to level the playing field between the banks that caused the collapse of the housing market and struggling homeowners. Representative John Conyers has introduced legislation in the House that authorizes judges to require banks to reevaluate overpriced mortgages of bankrupt homeowners.

Sign our petition to let Congress know that you support Conyers’ bill, H.R. 1106. Then, call your Congressional Representative and ask him or her to vote for it.

Conyers’ proposal is a simple, modest fix that will help keep hundreds of thousands of families in their homes. This bill is a win for every homeowner in America. By helping stem foreclosures, it will help arrest the decline in home values for everybody, not just those who are struggling to make payments. President Obama supports the bill and has called on Congress to pass it. The banks and the lobbyists that represent them oppose the bill with a passion.

These are the same banks that started this recession in the first place by hawking worthless subprime mortgage loans to naïve or unsuspecting borrowers. Joan Adams of Irvine, California lost her home to foreclosure, and is now living out of a motel by the airport. “There’s no one out there to help,” Joan says. “Billions of dollars to all the banks for bailouts for something they caused, and yet we’re the ones that are homeless.”

The banks have had their handouts. Now it’s time for struggling homeowners to be put first. Tell your Representative to support H.R. 1106.

2 thoughts on “Help Homeowners Level the Playing Field

  1. If we can put people on the moon, why can’t we keep them in their homes? Pay attention, banks and mortgage companies…Americans in homes with mortgages they can pay=good.

    Empty properties available at fire sale prices for the rich and greedy to buy up cheap so they can play slumlord=sick Republican fantasy.

    Any questions as to why things are the way they are?

  2. The playing field was tilted to benefit the lenders in 2005. That’s when the Republicans pushed through the bankruptcy changes that eliminated the options for distressed homeowners to get out from under their debts, unless they had almost no income to start with.
    Before the changes, a homeowner could discharge all their debts, but reaffirm the note on their house, keep paying their mortgage, and keep their house. Their credit rating would suffer, but they had relief from other obligations which made continuing to pay for their home a possibility.
    Once the changes were in place, this was no longer possible. Today’s homeowner with a mortgage, owing more than the property is worth, might be better off renting, but the law no longer allows them to even declare bankruptcy and walk away. If a house is foreclosed, the bank holds an auction, takes the sale proceeds, subtracts that amount from the amount owed, and sues for the difference. They then have an enforceable judgement for the rest of the money, and the bankruptcy court won’t let the former homeowner discharge the debt. They can garnish earnings, seize assets if available, and pretty much put anyone into poverty.

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