Saving homes from foreclosure via the mortgage modification bill was the theme of the National Association of Consumer Bankruptcy Attorneys as they visited legislators on its annual lobby day February 11. Members visited their representatives about bankruptcy issues impacting constituents.
Matt Mason, NACBA board member, pointed out that some 160 homes a day went to foreclosure in Wayne County, Michigan. Permitting loan modification under the supervision of a bankruptcy judge would allow borrowers to take responsibility and get money flowing to the lending banks. Present bankruptcy law prohibits changes to home loans but not to any other kind of secured loan.
HR 200 has been reported out of the House Judiciary Committee and awaits a vote on the floor.