The Hangup With Cramdown

Can the investors not live with a 4% interest rate? Are they all going to flee to Mexico? I think not. I would encourage all you readers to write to these two Senators to let them know why we think the cram down IS A USEFUL TOOL of last resort. As Citibank rightly divined, this is meant to be a stop gap measure not applicable to future mortgages. Now if only the investors would modify loans on their own accord, it would save everyone a bundle.

Make no mistake. Any legislation that helps consumers over corporate America will fail. Wealth will always collude with power and the little guy will always loose.

To the aides and lobbyists who say the odds are shifting in favor of the financial industry...this is propaganda. The aides are saying this to gain concessions from their respective camps. A few lobbyists are repeating this in hopes of a self-fulling prophecy. The bill WILL be narrowed somewhat from the House version; but make no mistake...this change to the bankruptcy code WILL happen. It will only pertain to existing mortgages, not new ones. And rightly so, because the root of the problem was the financial industry writing loans for the sole purpose of generating investment instruments at any cost. Justice is coming and this time the greed-ridden, immoral, corrupt financal industry types have no where to run.
As we speak, Bayh, Spector, Durbin, and Schumer are working out the language that will guarantee committee clochure for a full vote in the Senate in April.
What isn't being revealed right now is how many thousands of phone calls are hitting the Senate offices, from voters, in support of this measure. Yes the lobbyists have money, but you can't buy the kind of press that issues like bonuses at AIG for example provide to put the financial industry's greed on display. Call your Senator - support this legislation - NO TAX MONEY REQUIRED - and let's watch these predators get their come-upin's. Have a nice day! :)

No tax money required, you're right, everything in life is free. People bought homes they couldn't afford, made poor decisions and used their homes as ATM and Congress wants to re-write old contracts to bail these people out.

Example: Person buys a home for $300k in 200. As their home value increases, the person takes out $200k in home equity loans to take vacations, buy a new SUV and of course granite counter tops (this was very common as we all know). Now the home is only worth $300k again but they have $500k in debt, a bankruptcy judge can reduce their mortgage back to $250k or $300k and they keep all the goodies and the home? Then, the market rebounds and it is worth $400k again in 5 years and they sell and make $250k tax free again? This is exactly what the House bill proposed - I watched the entire debate on CSPAN online and the dems actually supported this exact scenario claiming that "people wouldn't be encouraged to file for bankruptcy if they couldn't make a profit down the road." What a joke.

Why would any bank want to loan $500,000 to somebody today when people could get that reduced to $300,000 any time they please if the market falls? Loans will become even more difficult to obtain and rates will be higher. The supporters of this bill always say "but it only pertains to existing mortgages and this is already an option for people that own second homes." That's exactly why mortgages for second homes ALWAYS come with a higher interest rate, go ahead, call you mortgage broker and ask.

People bought too much and borrowed to much, what is so wrong with them becoming renters again? Is it so bad to rent?

No tax money required, you're right, everything in life is free. People bought homes they couldn't afford, made poor decisions and used their homes as ATM and Congress wants to re-write old contracts to bail these people out.

Example: Person buys a home for $300k in 200. As their home value increases, the person takes out $200k in home equity loans to take vacations, buy a new SUV and of course granite counter tops (this was very common as we all know). Now the home is only worth $300k again but they have $500k in debt, a bankruptcy judge can reduce their mortgage back to $250k or $300k and they keep all the goodies and the home? Then, the market rebounds and it is worth $400k again in 5 years and they sell and make $250k tax free again? This is exactly what the House bill proposed - I watched the entire debate on CSPAN online and the dems actually supported this exact scenario claiming that "people wouldn't be encouraged to file for bankruptcy if they couldn't make a profit down the road." What a joke.

Why would any bank want to loan $500,000 to somebody today when people could get that reduced to $300,000 any time they please if the market falls? Loans will become even more difficult to obtain and rates will be higher. The supporters of this bill always say "but it only pertains to existing mortgages and this is already an option for people that own second homes." That's exactly why mortgages for second homes ALWAYS come with a higher interest rate, go ahead, call you mortgage broker and ask.

People bought too much and borrowed to much, what is so wrong with them becoming renters again? Is it so bad to rent?

Jak..
Wake up man !! What do you suggest the government do?? Nothing?? Why are you so down on the homeowners that are in trouble getting help? Two yrs ago if you were breathing you could get a mortgage, remember?? Who set those guidelines, the lenders or the borrowers? But that's ok right...And what about the executives of some of those same lenders who now want to capitalize on the "bad assets" by forming a company called "Pennymac".So what do you say about that.They banned Mike Milken from ever doing business on Wall Street because he was selling "Junk Bonds"..At least he let you know up front what you were getting!!

JAK...

Your simpleton view, and claims are unfounded, as are the Bank Lobbiest. You said " People bought homes they couldn't afford, made poor decisions and used their homes as ATM ".

This view is foolish! Just how did a person knowing buy a home they couldn't afford?? And your Examples are horribly assumptive.

Just what did those bad consumers do to cause Wall Street to fail? Blame the Bad consumer, and give the Greedy banker a free pass? Of Course, I bet your all for AIG getting a bail out from those Bad COnsumers who knew they couldn't afford those homes, right?

CRAM DOWN NOW! SCREW WALL STREET!

JAK IS RIGHT A LOT OF LOANS SHOULD NOT HAVE BEEN MADE .HOW EVER ,THIS IS NOTHING LESS THAN AN OBAMANATION OF OUR VERY OWN MARKETS. LETS REDISTRIBUTE THE WEALTH GREAT IDEA! DUBIA,SAUDI,ANY WHERE AIG PLAYS HOUSE AND TRIES TO CREATE CASH FROM THE SANDS LET THOSE 199 COUNTRIES BAIL THEM SELF OUT . AS FAR AS WHATS WRONG WITH RENT WELL THAT'S NOT THE AMERICAN DREAM IS IT. I MY SELF CAN LIVE IN A TENT ON THE 40 ACRES MY FRIEND PAYED $100. DOLLARS FOR ON THE COURT HOUSE STEPS( 10DAYS AGO) AND MY HOUSE IS WORTH ABOUT $250,000 NOW WHEN I TOOK A LOAN LAST YEAR IT WAS APP. AT $525,000.NOT MUCH CHANCE OF SELLING IN THIS FALSE MARKET MANIPULATED BY THE WEALTH STARVED FUND MANAGERS,BANKERS,INSURANCE COMPANIES AND POLITICAL ACTORS THAT ARE PAYED BY BIG LOBBY. GIVE THE COUNTRY TO MEXICO AT LEAST THERE HARD WORKING.BUTT IN CLOSING PLEASE LET EVERYONE FAIL ONLY THEN CAN WE BECOME TRULY A THIRD WORLD COUNTRY,WITH INFLATION AND RENTAL PROPERTY WORTH BILLIONS.

In response to everyone who thinks that only the irresponsible people will benefit from cramdown legislation I offer my self as an example. I didn't buy more house than I could afford, I don’t have an “exotic” mortgage. My house payment was around10-12% of my monthly income. I had been with the same insurance company for 10 years (the same insurance company my father had been with for 35 years) when I bought my house. To make a long story short, this company got rid of all of the experienced people doing my job and replaced them with less experience people to save money. Now I find my self struggling to rebuild my practice and unable to make my payments. I have chewed through my retirement plan making my mortgage payments and meeting my financial obligations. I am at the point now when I either declare bankruptcy or explain to my 9 year old boy why he has to move away from all of his friends. Even with bankruptcy, under current laws, I couldn’t afford to keep the house. I don’t have granite counter tops, I don’t drive an SUV, I didn’t treat my house like an ATM machine. My house is my home; it is my family’s home. We are part of this community and we will do whatever it takes to keep it that way.

This legislation probably will pass... and it will make things worse. Who do you think will eventually pay for the cramdowns? You will, with further bailouts to the financial industry after cramdowns cause bigger writedowns for companies on the "too big to fail" list. Citi knows this. That's why they're on board with cramdowns! They're playing a brilliant political game, knowing they'll be rewarded with continued preferential treatment on the backs of the American taxpayer.

The end result of this nonsense will come in one of two ways. A dramatic increase of taxes combined with a reduction in benefits, or a healthy dose of inflation. Which one do you think politicians will choose?

I absolutely support this cram down. I work in the automotive industry which has seen a drastic decrease in revenue due to the economy and thus my income has decreased 40%. I NEVER took out a loan on our home, or used it as an "ATM". It isn't my fault that the economy has gone to hell, it isn't my fault that my home has lost $50k in value, it definately isn't my fault that these predatory lenders would not get off their a$$ to work with my family on a loan modification prior to us filing a Chp13. I notified the loan servicer 5 months prior to filing the bk that we needed help and they just kept making excuses and putting us off. We moved out and began renting in Sept 2008, now in Feb 2009 the lender says they want us to stay in the home. They have adjusted the payment down $500 a month, but they are putting us into another 3 yr ARM and putting a lien on our home for an additional $25,000 over our original purchase price from their "fees" and arrears payments. Our home is currently worth $180,000, we bought it 3 yrs ago for $227,000, the total amount we will owe if we sign off on this "modification" will be $252,000. If they would have adjusted our payment last year we would not have filed BK or owed any arrears, and we never would have moved out and paid 6 months of rent on another property. Our family is the EXACT reason why this should be enacted, we attempted to work in good faith, the lender sat on their hands and didn't care.

Lego Hater,
So we should just sit back & do nothing and let the banks keep foreclosing on homes.Then turn around and sell them @ 40% of the mortgage balance.What's the difference between that and the homeowner doing the "cramdown" @ 40 % if that's what it takes to keep the home.A friend recently lost her home thru foreclosure. She owed about $390K. After 7 months of trying to work out something with Option One, she finally gave up. The house just closed for $189K. They could have dropped her mtg to 250K and she could have afforde to keep her home. But I guess a "cramdown" is different because the homeowner is in control and not the bank!! I keep hearing people saying "the bank doesn't want your house" they are willing to work with you to stay in there.Only those who haven't had to deal with the situation believe that.Can ALL the people being foreclose on not quqlify for a workout with the lender...Can they all be wrong? Someone suggested that everybody's mtg interest rate be adjusted to 4% across the board. Not such a bad idea because those who don't really need it will have a lot more disposable income to put back into the economy.And the principal balance doesn't have to be reduced ..

Jak - thanks for that healthy dose of sarcasm...very helpful. I prefer pramatism instead. I'm not saying that cram down is the end-all be-all...but your generalizations do not represent the majority of the 10% of mortgages now in jeopardy (roughly 9 million).

Now, it's my opinion that the average American has a natural sense of fairness which is part of the American way of life. It's been my experience that, most of the time, those who get punished deserve it, and those who deserve a leg-up get it. The losses in the real estate industry exist. Properties that have a note of $500K but a current market value of, say, $350K are inflated on paper. We, the folks who pay our taxes faithfully, have IRAs that have lost 25% or more (and boy do I know how that feels), and whose equity in our homes, through no fault of our own, has evaporated are already neck-deep in this mess. So the real issue, whomever you are, is who eats the losses that already exist? Not so long ago you couldn't turn on the radio or TV and NOT see an ad about getting a mortgage, or refinancing. I refinanced to do some improvements. I pay my mortgage every month. I provided full docs, just like the majority of people who refi-ed. But, without appropriate regulation, the lenders were free to "steer" honest people to less than perfect mortgages. You can say buyer beware, and that has merit. But in a traffic accident, the person with the last clear chance to avoid the collision is primarily at fault...ie the brokers and lenders. They were the financial "experts", and they promoted the disaster for profit. So, that said, who eats the losses? Well, my sense of justice is that the loss should be shared...and I think an impartial party, such as a judge, should be able to look at the situation and apportion it appropriately. I don't think honest people, who still have income to support a reasonable mortgage should be kicked to the curb just because the current contract says the mortgage company can do so. Nor do I think that mortgage companies will be inherently fair in a modification process of their own design. The mortgage companies don't want to eat ANY of the loss and want the homeowner to shoulder the entire burden. That "AIG level" greed helped create this mess and that's why modification needs to be judicial to be fair to all of us. Foreclosure costs everyone...taxpayers, neighborhoods, real estate agents, honest lenders, and most of all honest homeowners. If you were foreclosed on today, the investor, whether an individual or your pension fund, eats the loss plus the costs to rehab and market the property which now further depresses the value due to the REO glut. A judical modification mitigates this impartially. Mortgage companies don't care about fairness...they care about profit...and that should not be a shock to anyone...it's NOT a bad thing...but in this situation...fairness and market stability should outweigh profit. Only a court can be fair and impartial; not parties with their own vested interests.

Regarding the investor, which could be any of us...they should have legal recourse against the lender for misrepresenting the investment instrument as AAA. Again...judicial redress is the appropriate method. The homeowner had nothing to do with how the investment instrument was offered, yet that's who the lenders and brokers wish to carry the entire loss. There is a time and place for governmental intervention...and, with all due respect, this is it.

Finally - H.R. 1106 which passed recently does not provide for bankruptcy cram downs regarding mortgages that are written AFTER the legislation becomes law. So the arguement of "pricing in future risk" for new mortgages is a red herring. The cram down provision is needed to mitigate (not fix) the current risk, not future risk. Policies and regulations need a top to bottom review for 1st mortgages on primary residences. Thanks for reading this post.

Jak is right, that the cramdown is too far-reaching and rewards some improperly.
Cramdowns should be limited to loans that "should not" have been made-- sub-prime, negative amortizatioon, etc.

1. Yes, there are MANY borrowers who really should get help-- the guy who borrowed, played by the rules, but lost his job and would like a cramdown:
he does deserve help. but that does not justify sticking it to the lender with a cramdown.
The stimulus bill offers some government subsidized COBRA and Medicaid, extended nemployment benefits:
good-- whatever aid this guy deserves, let's debate and decide the right amount of taxpayer dollare to use to help him, NOT just make the lenders pay and clam it is "free".

2. the cramdown IS charging the lender for the borrower's unlimited losses:
under the law (no cramdown) that the parties assumed when they made the loan,
the lender is already stuck taking a loss in foreclosing on the collateral (the home), but at least the lender gets that. Under cramdown, the lender is LIMITED to the amount theat the lender could get in foreclosure, but is stuck continuing the loan to the troubled borrower and subject to losing another 50% or more if the borrower has more problems.
So the right answer is let the lender get what it is entitled to in foreclosure, and any help for the borrower should come from taxpayer money (a taxpayer bailout for the consumer) or not at all. If the taxpyers want to advance some funds to help the borrower, great; if not, it'snot the lender's job to pay the difference.

3. Making it retroactive is not fooling anyone-- that's the whole point-- if Congress adds cramdwons to exisitng loans it is starting down this new road of making major retroactive revisions of contracts and debts whenever any real fianancial trouble starts. Lenders WILL have to price that in and charge much more to cover the possibility of it happening again in some other way. Other investment and business relations will similarly be harmed.

Jak is right, that the cramdown is too far-reaching Cramdowns should be limited to loans that "should not" have been made-- sub-prime, negative amortizatioon, etc.

1. Yes, that means MANY borrowers who really should get help, won't-- the guy who borrowed, played by the rules, but lost his job and would like a cramdown. He does deserve help. but that does not justify sticking it to the lender with a cramdown.
The stimulus bill offers some government subsidized COBRA and Medicaid, extended nemployment benefits:
good-- whatever aid this guy deserves, let's debate and decide the right amount of taxpayer dollare to use to help him, NOT just make the lenders pay and claim it is "free".

2. It's not "free" any more than theft is free fromthe guy you rob. The cramdown IS charging the lender for the borrower's unlimited losses:
under the law (no cramdown) that the parties assumed when they made the loan,
the lender is already stuck taking a loss in foreclosing on the collateral (the home). Under cramdown, the lender is LIMITED to the amount theat the lender could get in foreclosure, but is stuck continuing the loan to the troubled borrower and subject to losing another 50% or more if the borrower has more problems.

3. Making it retroactive is not fooling anyone-- if Congress adds cramdwons to existing loans it is starting down this new road of making major retroactive revisions of contracts and debts whenever any real fianancial trouble starts. Lenders WILL have to price that in and charge much more to cover the possibility of it happening again in some other way. Other investment and business relations will similarly be harmed.

Arlen,

Your friend obviously took a loan she couldn't afford towards the peak of the bubble and is far better off financially having foreclosed. She can now go rent an equivalent house for half the price, build up savings and rebuild her credit rating. Also, the 4% interest rate is a joke for the types of foreclosers we'll be seeing in the next two years. People in Alt-A's (the next crisis) are already defaulting at 1% teaser rates.

All the stories, and little defenses for all those people in financial trouble! We as Americans are facing the worst financial crisis of all times and we are behaving badly, worst then children! When I first bought my house, it was as my first marriage of which I believe that I was in love! The bubble burst and what have you the end of days, with a list of orders from a Divorce Judge! The Judge's Order kept me in line and gave us direction,... The first American's gave us, America, or did we take it? The true spirit of America is giving, and in return the tax payer picks up the bill, anyways. Banks have been making money at this for a long time. I worked hard to complete my education, I've working since I was eight years old and don't have any outstanding debt other than my mortgage. I had an ARM loan, as you would say, that doubled! I was never late with a mortgage payment in ten years. It's at a point now, where ever we are as human's being or other,... what ever the means or points of differences, from cram down, to stick-en up, or taxes up the American people, we need to do something now!!! How dumb Are We, really!

Jak is right. If the cramdowns are allowed to happen on a wide scale basis it would ruin the banks and could tip the country into a deeper recession and even a depression. I feel sorry for Laidoff, and I hope that some solution can be found for him and others like him, but I fear an all-inclusive legislative band-aid approach is not the best solution. If cramdowns are allowed to happen on a large scale the the lenders and and other financial institutions will need bailing out by the taxpayers. Judges are overwhelmed and have no time to get into the details of each bankruptcy or foreclosure. This is a huge problem, the judges need help, homeowners need help, banks need help. Is the government the only source of help. We all know what happens when governments help - draconian pig-headed arrogant decrees or else.

Duggles, Jak, and the throw the family on the street fan club.....The bill has already been ammended (4 ammend.s)so that it would be limited to existing loans and conditions to qualify. So that alone would limit the "Wide Scale Basis" opinion. Your "Doomsday Theory" is Unfounded. It appears you either work for the "Banking Industry" or you are "Lobbying against this bill". Giving Bankrupcy Judges the lawful ability to Modify, would create stability and be part of getting this economy back moving ....instead of massive losses and everybody losing. The Banks would still make money money or at least recover most of their money. Banks would, "SUDDENLY" become way...way more agressive than ever to modify, especially knowing if they don't get off their ass. The Judges will be way more than accommodating to do it for them. at a substantely more discounted rate. Families would have Real Hope and financial stability once again. Which would promote spending. City, State, and Federal Government taxes would begin to flow again on all these current and prevent future dormant or empty dwellings. You are trying to speak for Bankrupcy Judges!... But you are Wrong again. Most BK Judges only wish they had the law on their side to be able to make modification that could help both sides. But the don't... Their hands are tied and limited. Judges welcome the ability to help this country.. and help families save their homes" and at the same time be fair to the creditor. I know you want "Get Back" at some foolish people and let them fall. So what do you accommplish.... A million more..(American!) Homeless families, more foreclosurs, less tax revenue, more unemployment, a hopeless outlook and future overall. Flatout Anger and Hate, towards your own fellow "American" neighbors and their families is not productive or positive in any way whatsover ! Doing Nothing will Accomplish Nothing !!! It is time to do something Now.. and quit Stalling and bickering ! PASS THIS BILL AND PASS IT SOON !

HELP US! PLEASE HELP PUSH THROUGH S.61 NOW...
Helping Families Save Their Homes in Bankruptcy Act of 2009
S. 61 is consistent with the goal of offering assistance to homeowners making a good-faith effort to stay current on their mortgage payments. Judicial modification is a last resort, no-cost option to foreclosure that may keep as many as 1.8 million FAMILIES their homes, according to Credit Suisse. Granting bankruptcy judges this authority gives home mortgages on primary residences the same treatment as vacations homes, yachts or investment properties owned by wealthier borrowers. Why should those facing financial crises, whose homes are their most valued asset, be denied relief given to others?
S. 61 will help honest, hard working homeowners who may have been lured into predatory loans, suffered economic hardships, or who are overwhelmed by medical expenses, save their homes from foreclosure. Keeping people in their homes has the added benefit of helping to stabilize devastated neighborhoods and will give our economy a much need boost.
Please support S. 61 and oppose efforts to weaken it. Thank you

Although some of the problems you describe are correct, a major player is being overlooked. Credit card interest rates....

Two years ago I was paying on time every bill. Interest rates were around 10% on credit cards. When I missed one or two payments those cards interest rate went up to 24%. Since credit card company's review your credit history every 3- 6 moths they can see if your late. Under current laws, all other credit cards company’s can raise their interest rates regardless of your history. Even perfect payment history with a credit card company; they can raise your interest’s rates as high as they get away with. Capital One has gone as high as 32%.

Then it slowly started, one after another until all my cards were raise to 25% plus interest rates. What was once affordable monthly payments became a struggle? My ability to use credit cards then reduced by 50%. My credit scores that were once 650 plus are now below 575.

Now we add in a recession or just bad economy. My small company's sales are flat. Sales are down 35%. So I filed for bankruptcy, chapter 13. The problem is it might have worked had the economy remained stable. The economy got worse; sales dropped another 20% so far this year. Our local electric company (SDGE) raised their rates as of January, state income taxes are being raise, gas taxes raised, sales tax raised again two times in one year (highest taxes in US)10.2% unemployment and more taxes are coming even after the state budget was resolved, nearly four month late.

So with all that is going on, yes we all made bad choices. Some have dad investments in stock, auto manufacturing, banks, construction, real estate, expansion in business and more. Even the illegal’s are leaving because the once great US is in the poor house.

If we help each other, will it work? Who knows...? But I do know this much, I worked hard, paid my taxes, served my country and trying survive. I am not a loser or a bad investment, just an average guy who reached for the stars, just like you and they are dimming each day that passes.

The upside, even the brightest and smartest planned for a bright future: California, US Federal Government, China, Japan, Russia, Iran, Iraq, and my neighbors. They were all fooled just like me.

But if we get help, maybe, just maybe your home, job, stock investment, business or community will not be the next one to be sold, foreclosed or out of business.

I do not want a handout, just a helping hand.

What's your solution?

THE BOTTOMLINE.

Example:
You buy for 600k

Hardship:
Wife laid off, my company closed, etc..

Mortgage Payments:
Now you cannot afford your $3800 monthly mortgage payment, but you can afford say $2500
The bank won't modify your loan because you can no longer afford thay payment (trust me there playing games)

The Banks Offer:
We'll accept a short sale for $400k -WTF!!!!

Homeowner: Why not reduce my balance to $450k and I'll make the payments on that?

Bank: NO!

Home Onwer: Wait for HR1106 to pass and to hell with the mortgage bank.

Bank: After HR1106 passes maybe they'll call you and offer a modification at $500k. Trust me they'll began to offer principal reductions on modifications when the heat of the Cram Downs began. It'll be to late for playing games!

The Bottome line: Even if the bank short sells it or forecloses they still loose. Because a new buyer will buy the home at current market of $400k so why kick a family out that is willing to stay even a higher loan amount of the current market value. This shows the banks don't care.

Approve and Pass - H.R. 1106 all the way!

i have lived i my home for 5 years neaver missed s payment so the bank has made 125 thousand in interest from me already gready!!!!!!!!!!!! now i have no work and they don't want to help. forclose and they lose 150 grand modafy they lose 100 grand no brainer.

I have been in the mortgage business for 30 years and talk to people every day with mortgage trouble. Most of those do not have predatory loans, did not get "liar" loans, but due to the economy do not make the money they made even a year ago. It is heartbreaking. Their reserves are now gone and their banks play games rather than seriously considering modifications.

The banks say "you don't make enough money" for the new payment, and then a month later say "you make too much money" based on exactly the same information. They tell borrowers with perfect credit and payment records that they have to miss at least 3 payments before they can entertain a modification, and then start foreclosure proceedings!

I object to the heavy hand of government, but the fact is the clerks at the banks don't care if they foreclose or not. The executives talk a good game about "helping" the consumer, but that's only when they're talking to the media or to Congress. Unless someone (e.g., a bankruptcy judge) forces them to make a reasonable accommodation, they are simply not going to do it.

This legislation will only apply to existing loans, so the argument that future lending will be affected is specious and self-serving. This is a lifeline for millions of people and should be passed IMMEDIATELY to help all those who really need it!

PLEASE contact your senators and the White House and tell them to get this done before their vacation (they seem to be the only Americans who can still afford one).

So much for by the people for the people

Regarding the bankruptcy for homeowners,I just sent this to the chairman of the Republican party:

You think the last few elections were bad for the party,wait til the next one.With Senator Bayd and Senator Kyl supporting the banking/mortgage industries and voting agaist the legislation, people will LOSE their homes.They may have to rent but they will still vote and with Senators like these, the Republican party will continue to LOSE voters.Making President Obama and the Democrats heroes for the homeowners is a huge problem for the party and Senator Bayd and Senator Kyl give the appearance that their committment to the businesses that ruined to the economy mean more to them than the people.See you next election but I will note vote the republican ticket,nor will alot of others.Good Luck.

Joe Johnson
cc.CNN
MSNBC
Arizona Republic

CALL ALL CHURCHES IN YOUR AREA, AND
ASK THEM TO PRAY FOR PEOPLE IN
DANGER OF LOSING THEIR HOMES. ASK
THEM TO SIGN ONLINE PETITION UNDER
GOOGLE (S61 PETITION). WE NEED
MORE SIGNATURES. CALL HARRY REID'S
OFFICES AND TELL HIM THANK'S FOR
LETTING US KNOW YOUR BECOMMING UNCOMFORTABLE, AND WE WILL KEEP
ASKING FOR A BEFORE EASTER VOTE ON S61.
KEEP UP THE PRESSURE.

After nine months of jumping through hoops last year I was finally offered a modification. My monthly payment was raised, and they tacked on $12,000 to the principal. Little known fact...a study of the 250,000 plus mortgage modifications carried out in November of 2008, 45% were modified up. Now how's that for help from kind Mr. Banker who will tell anyone listening that they're doing their best, really, most people can't be reached for discussion they say over and over.

HR1106 must pass and pass soon. However, with the millions upon millions of dollars the banking industry lobbyists are throwing aroung in D.C. right now, I'm not feeling to good about it. That very same fact is what convinces me the most that this is the fix that we need. Let the bankers eat cake.

AMERICANS IN FAVOR OF HR 1106, S.61 IT IS TIME TO HAVE YOUR VOICE HEARD. THE SENATE IS OUT FOR 2 WEEKS AND WHEN THE SENATORS RETURN THIS BILL IS GOING TO BE ONE OF THE FIRST BILLS THAT WILL BE ON THE AGENA. THE BANK LOBBY IS VERY, VERY ACTIVE AND TRYING TO STOP HR 1106, AND S.61 FROM PASSING.
THE BOTTOM LINE IS THAT 60 VOTES ARE NEEDED FOR IT TO PASS. AT THIS TIME IT APPEARS THE BILLS IS AT LEAST 10 SHORT OF 60...DURING THIS SENATE RECESS WE NEED TO FIGHT BACK HARD AGAINST THE BANK LOBBY AND DEMAND AND OVERWELM THE SENATORS THAT THIS BILL NEEDS TO BE PASSED OR FACE BEING LABELED "BOUGHT OUT" AND PUTTING HARDWORKING FAMILIES ON THE STREET AND FURTHER DESTROYING THE AMERICAN ECONOMY. SEN. KYL OF ARIZONA APPEARS "SOLD OUT" TO THE BANK LOBBY EVEN THOUGH HIS STATE IS ONE OF THE WORST IN FORECLOSURES.(GOOD CHANCE HE CAN KISS HIS REELCECTION HOPES GOODBYE!) THESE ARE THE SAME SENATORS THAT JUST BAILED OUT THE BANKING INDUSTRY....AND NOW THE MONEY THEY GOT FROM US (TAXPAYER) IS NOW BEING USED TO LOBBY AGAINST US...BY THE HAND THAT SAVED THEM. AND YES, IT SHOULD PISS YOU OFF ! HR 1106 IS NOT A "MONETARY BAILOUT" JUST A CHANCE FOR A JUDGE TO GIVE FAMILIES AN AFFORDABLE PAYMENT TO SAVE THEIR HOME! IF WE DON'T OVERWELM THE SENATORS WITH EMAILS, CALLS, LETTERS TO PASS THIS BILL..YOU ARE SAYING YOU DON'T CARE ENOUGH TO DO SOMETHING ABOUT IT AND LETTING THE BANKING INDUSTRY LOBBY WIN ! DON'T LET THIS HAPPEN ! THEY ARE SPENDING MILLIONS TO ATTEMPT TO DEFEAT OUR ONLY LINE OF HELP. WE HAVE 2 WEEKS TO HAVE THEM RETURN TO A PILE OF EMAILS, LETTERS, PHONE MESSAGES THAT THEY BETTER PASS THIS BILL OR BE EXPOSED AS BEING "BOUGHT OFF", AND DOING NOTHING TO HELP HARD WORKING AMERICAN SAVE THEIR HOME. THE HOUSE OF REPRESENATIVES GOT THE JOB DONE ! PRESIDENT OBAMA HAS ALREADY SAID HE WILL SIGN THIS BILL INTO LAW IMMEDIETELY IF PASSED! THE ONLY HOLD UP IS OUR " US SENATE". IT IS NO LONGER "ASK" OR "PLEASE CONSIDER". IT IS TIME TO "DEMAND" THAT THIS BILL BE PASSED OR WE WILL BE SOLDOUT. THEY NEED TO HEAR YOU ARE UPSET AND TIRED OF DELAYS AND YOU NEED THIS BILL PASSED. LET THEM KNOW YOU WILL NOT LET THEM "SELL OUT" TO BE "SOLD OUT". REPUBLICANS AND DEMOCRATS ARE BOTH NEEDED TO VOTE IN FAVOR. BUT THAT IS OK, BECAUSE THIS IS NOT JUST A REP/ VS /DEM ISSUE. THIS IS A AMERICAN CRISIS ISSUE. WE ARE ALL AFFECTED. DOING NOTHING... WILL ACCOMPLISH NOTHING EXCEPT MAKE THIS FINANCIAL CRISIS ONLY WORST. IT ONLY TAKES A FEW MINUTES OF YOUR TIME, (AND I WILL EXPLAIN A EASY ACCESS TO MAKE SEVERAL CONTACTS OF SENATORS) IF ARE HAVING DIFFICULTY WITH PAYING YOUR MORTGAGE THIS BILL IS VERY IMPORTANT TO YOU AND YOUR FUTURE OR YOU WOULDN'T BE ON THIS WEB SITE. NOW IS THE TIME.. TO FIRE AT THEM AND FIRE AT THEM HARD. SIMPLE "GOOGLE" THE STATE AND THE US SENATORS FOR ANY STATE YOU CHOOSE, AND IT WILL LEAD TO HIS OR HER WEBSITE. SEND TO AS MANY STATES AND SENATORS AS YOU CAN. OVERWELM THEM SO THAT THIS CANNOT BE PUSHED ASIDE, IGNORED, OR TREATED LIGHTLY. THE US SENATE NEEDS TO KNOW THEY WILL BE UNDER THE SPOTLIGHT AND MEDIA AND PUBLIC JUDGEMENT TO DO THE RIGHT THING TO HELP AMERICANS. IF PUBLIC FRUSTRATION AND ANGER AND HIT HARD ENOUGH THEY WILL NOT WANT TO FACE THE WRATH. EMAIL,PHONE CONTACTS ARE EASILY AVAILABLE AND ACESSABLE. THIS IS THE LAST STEP, MAKE YOUR VOICE HEARD AND DEMAND THAT YOUR US SENATORS REPRESENT. DURING THE NEXT 2 WEEKS AND TOGETHER WE CAN MAKE IT HAPPEN. GOD BLESS AMERICA !

Go to google, and type in online petition S61. Everyone sign this. Call
your all Senators at home offices through Easter!!!! Let them know
to stop holding this up and Vote
yes to S61......

Gentlemen:
I just read about the REJECTION OF THE CRAMDOWN LAW-
when will it go back to be re voted again? this is chaos for the victims of bank fraud, mortgage fraud predatory lending, unappropriate stated/no docs deals to low income workers who do not own a business and only have one home-

PLEASE PUT IT BACK TO BE RE VOTED AGAIN: OTHERWISE CITIMORTGAGE AND COUNTRYWIDE WILL RAISE MY INTERESTS RATES FROM 8.5 % TO `15% THIS IS INTENTIONAL AND DELIBERATE SINCE THERE ARE NO ONE OVERSEEING THEM - NO LAW- NO JUDGES -they lie, they falsify application, they inflate property value and razor erase information in order to put their own appropiate lies, so that the homeowner is trapped into a high interest rate at the second month of the mortgage (8.5% which will balloon to 15% THEN I WILL EVENTUALLY BE FORCED TO FORECLOSE ONCE IT REACHES THAT RATE

Because there are no law to stop them, they manipulate and pre calculate BEFOREHAND - intentionally to trap vulnerable low income seniors IN HIGH INTEREST RATES and make them lose their home from raising their rates whenever they feel like it-

THEY REFUSE TO MODIFY- I AM PAYING 83% OF MY MONTHLY INCOME TO A MORTGAGE WITH COUNTRYWIDE- I WAS PRAYING FOR THE CRAMDOWN LAW- A JUDICIAL INTERVATION BYA JUDGE TO FORCE SUCH INSTITUTIONS TO MODIFY LOANS TO FIT HOMEOWNER MONTHLY INCOME TO 31% OF THEIR INCOME AS STATED IN THE HOMEOWNER'S AFFORDABILLITY AND STABILITY PLAN OF PRESIDENT OBAMA AND MAKING HOME AFFORDABLE

THIS WHAT IS HAPPENING WITHOUT LAW WIHOUT REGULATION- THE CRAMDOWN LAW IS NEEDED FOR VICTIMS OF MORTGAGE FRAUD PREDATORY LENDING, TOXIC ASSETS SUCH AS "LINA" =LOW INCOME NO ASSETS - BY BANKS SUCH AS CITIMORTGAGE, COUNTRYWIDE AND OTHERS -

I am one of the victims of MORTGAGE FRAUD caused by brokers and banks abusing their powers WITHOUT SUCH LAWS TO OVERSEE that they make you pay whaever interest rates they choose knowinly that I only made $1,906. a month Social Security plus pension- they lie, lured me coherced me falsified my application inflated the value of my house ) even if it means that you will be on the verge of losing your home as soon as that rates goes -

IF THERE WAS A CRAMDOWN LAW, I would not have found myself vulnerable in the hands of banks such as CITIMORTGAGE AND COUNTRYWIDE which lied to me coherced me and falsified my application, inflated the value of my house made me pay an outreageous interest rates of 8.5% to balloon to 15% so that I will end up losing my home

the CRAMDOWN LAW would have overseen such devious happenings and would have save victtims like myself at the mercy of banks to charge whatever interests rates not taking in consideration that I WILL BE PAYING 83% OF MY INCOME TOWARDS A MORTGAGE WHEN IT SHOULD BE 31% AND HAVE THE INTERESTS RAISEd EVERY OTHER YEAR SO THAT I WOULD END LOSING MY HOME

NO LAW SUPERVISES BANKS FROM OVERCHARGING LOW INCOME DISABLED MINORITY SENIORS WHATEVER INTERESTS THEY FEEL LIKE CHARGING YOU. - WE ARE AT THE MERCY OF THESE INSTITUTIONS AND EVENTUALLY THEY END UP SETTING US UP TO FORCLOSE-

WHERE IS JUSTICE FOR the poor, the vulnerable, the low income, those who cant afford legal assistane and those who have to wait YEARS BEFORE GETTING LEGAL AID ESPECIALLY IN THE MORTGAGE FRAUD SECTION- TODAY THEY ARE BEING BOMBARBED BY VICTIMS? WHO IS GOING TO STOP BANK FOR BEING PREDATORS AND ABUSING OF THEIR POWERS- THIS IS WHAT CAUSED THE DOWNFALL OF THE FINANCIAL SYSTEM: BANKS SUCH AS CITIMORTGAGE AND COUNTRYWIDE WHO DO WHAT THEY WANT AND ABUSE OF THEIR POWERS- WHO IS WATCHING OUT FOR THE VICTIMS OF BANKS?

PLEASE RE VOTE ON THE CRAMDOWN LAW BEFORE I END UP LOSING MY HOME


PATRICIA WARMHOLD
516-495-4556
pd15@optonline.net