Congress: Help Keep Families in Their Homes

Subject: Give us real help to avoid foreclosures

Dear [Decision Maker],

Billions of taxpayer dollars have gone to bail out the giant financial institutions from their poor lending decisions, but little help has been given to the millions of Americans who risk losing their homes. I urge you to pass legislation that would allow homeowners facing bankruptcy to restructure their mortgages and save their homes. And I ask you to make sure the next round of TARP bailout funds includes a real plan to help homeowners avoid foreclosure.

[Your Comments]

The "Helping Families save Their Homes in Bankruptcy Act of 2009" (S. 61 and HR 200) could help reduce home foreclosures by 20 percent. The measure won't cost taxpayers a cent, and it won't let families off the hook from paying their mortgage. Rather, it simply gives bankruptcy judges the authority to modify loans when homeowners have exhausted other options to avoid foreclosure.

Currently, bankruptcy courts can modify all sorts of loans -- for owners of big corporations, commercial real estate, even those with vacation properties -- but they can't do the same for families on the verge of losing their only home. This just doesn't make sense in our economy, where homeowners are getting laid off and are struggling to keep up with mortgage payments. Distressed families who want to keep their homes should have the same chance to modify their loans in bankruptcy as commercial property developers or owners of big corporations.

In addition to this simple fix that could save a million homes, I urge you to make sure that the next round in the Troubled Asset Relief Program (TARP) include a plan to modify mortgages to save the American dream of home ownership.

Institutions receiving assistance under TARP should be required to establish affordable, streamlined and aggressive loan modification programs. Sustainable loan modifications would significantly decrease the number of foreclosures over the next several years and are vital to our economic recovery.

It's estimated a home goes into foreclosure every 13 seconds, and there is no end in sight. Voluntary actions to stem foreclosure by lenders, and incentives by the government aren't working. Please give struggling families some real relief right now by passing S. 61/HR 200, and ensuring the TARP money includes real help to avoid foreclosures.