Plan Estimated to Help 7 to 9 Million Families Restrucutre or Refinance to Avoid Foreclosure

Washington, DC – Today, Congressman Joe Baca (D-Rialto) voted with a bipartisan majority in the House of Representatives to approve legislation that would enact essential provisions of President Barack Obama’s comprehensive Homeowner Affordability and Stability Plan.  H.R. 1106, The Helping Families Save Their Homes Act, passed the House by a vote of 234 – 191.   

“Stabilizing the housing market is central to restoring the American economy,” commented Rep. Baca.  “The important provisions enacted in today’s bill are critical to keeping more American families in their homes.  This legislation is of even greater importance to the Inland Empire, were we suffer from the fifth highest rate of foreclosures in the nation.” 

H.R. 1106 fixes the flawed Hope for Homeowners program, which was designed to spur the refinancing of mortgages, reducing lender fees that discouraged loan modification and by offering new incentives for lenders to negotiate loans.  The bill also promotes responsible loan modifications necessary to prevent foreclosures by protecting lenders from lawsuits for modifying loans. 

Additionally, to push lenders into helping families who have run out of options, the bill allows bankruptcy judges to modify the terms of loans for existing mortgages.  This common-sense measure is already writing into law for borrowers on vacation homes, real estate speculators, corporations, and family farmers.  Making it also apply to homeowners in jeopardy of losing their primary residence will not cost taxpayers any money, and could reduce foreclosures by up to 20 percent.

“If we do not act now, an additional 6 million homes are expected to go into foreclosure over the next three years,” concluded Rep. Baca.  “President Obama’s plan is a comprehensive approach that can reduce the record number of foreclosures and stop the nationwide drop in home values.  I am proud to support this plan with today’s bill – which puts American families, and not big banks, first.”