Breaking News: H.R.1106, The House Foreclosure Bill Can Amend All Liens on a Property, Not Just the First Mortgage
March 6, 2009
Businesses that lend money secured by property as well as contractor’s that furnished goods and services on a home will lose a lot of money if the new House Foreclosure Bill passes in its present form. The bill is known as: Helping Families Save Their Homes Act of 2009. To prevent mortgage foreclosures and enhance mortgage credit availability. In essence, the bill allows for the modification of a creditor’s rights as to any liens on a property once the owner qualifies with his/her first mortgage to go into this new bankruptcy modification. This includes, Community Associations, homeowner associations, condominium associations, contractors, business deals/loans secured by a mortgage or lien.
To make matters worse, if a debtor in the Bankruptcy modification plan incurs new debt secured by his/her home, the notice provisions to the Bankruptcy Court to preserve the right to collect that debt have become more complicated. If done wrong, the your can be wiped out.
Call your United States Senator and make them aware of these issues. Considering many Congressman have openly admitted to not reading the “Stimulus Bill”, it’s doubtful they read the Helping Families Save Their Homes Act of 2009. To prevent mortgage foreclosures and enhance mortgage credit availability.. Call them now, the vote by the United States Senate is soon.
SEC. 103. AUTHORITY TO MODIFY CERTAIN MORTGAGES.
Section 1322 of title 11, United States Code, is amended–
(1) in subsection (b)–
(A) by redesignating paragraph (11) as paragraph (12),
(B) in paragraph (10) by striking `and’ at the end, and
(C) by inserting after paragraph (10) the following:
`(11) notwithstanding paragraph (2), with respect to a claim for a loan originated before the effective date of this paragraph and secured by a security interest in the debtor’s principal residence that is the subject of a notice that a foreclosure may be commenced with respect to such loan, modify the rights of the holder of such claim (and the rights of the holder of any claim secured by a subordinate security interest in such residence)–
SEC. 104. COMBATING EXCESSIVE FEES.
Section 1322(c) of title 11, United States Code, is amended–
(1) in paragraph (1) by striking `and’ at the end,
(2) in paragraph (2) by striking the period at the end and inserting a semicolon, and
(3) by adding at the end the following:
`(3) the debtor, the debtor’s property, and property of the estate are not liable for a fee, cost, or charge that is incurred while the case is pending and arises from a debt that is secured by the debtor’s principal residence except to the extent that–
`(A) the holder of the claim for such debt files with the court and serves on the trustee, the debtor, and the debtor’s attorney (annually or, in order to permit filing consistent with clause (ii), at such more frequent periodicity as the court determines necessary) notice of such fee, cost, or charge before the earlier of–
`(i) 1 year after such fee, cost, or charge is incurred; or
`(ii) 60 days before the closing of the case; and
`(B) such fee, cost, or charge–
`(i) is lawful under applicable nonbankruptcy law, reasonable, and provided for in the applicable security agreement; and
`(ii) is secured by property the value of which is greater than the amount of such claim, including such fee, cost, or charge;
`(4) the failure of a party to give notice described in paragraph (3) shall be deemed a waiver of any claim for fees, costs, or charges described in paragraph (3) for all purposes, and any attempt to collect such fees, costs, or charges shall constitute a violation of section 524(a)(2) or, if the violation occurs before the date of discharge, of section 362(a); and
`(5) a plan may provide for the waiver of any prepayment penalty on a claim secured by the debtor’s principal residence.’.
