Last night, the United States House of Representatives passed H.R. 1106, also known as the Helping Families Save Their Homes Act of 2009, by a vote of 234-191. This bill would allow bankruptcy judges to reduce mortgage payments by adjusting principal balances and interest rates. The bankruptcy judge could then “cramdown” these reduced principal balances and adjusted interest rates to the lender.
The purpose of the bill is to reduce home foreclosures by making mortgage payments affordable to the homeowner. To qualify, however, the owner must try to negotiate a voluntary loan modification with the lender before filing for bankruptcy. Homeowners should contact an experience bankruptcy attorney to address such pre-filing concerns as proving that these negotiations were attempted.
Kansas Representative Dennis Moore (D) voted in favor of the bill while Jerry Moran (R), Lynn Jenkins (R), and Todd Tiahrt (R) all opposed.
As for Missouri, Wiliam Clay, Jr. (D), Russ Carnahan (D), Ike Skelton (D), and Emanuel Cleaver (D) supported the bill, and Todd Akin (R), Sam Graves (R), Roy Blunt (R), Jo Ann Emerson (R), and Blaine Luetkemeyer (R) opposed.
To see the voting record, click here.
– ksmolawyer
