[Congressional Record Volume 156, Number 151 (Thursday, November 18, 2010)]
[Extensions of Remarks]
[Pages E1979-E1980]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    PROTECTING HOMEOWNERS AND FORECLOSURE STABILIZATION ACT OF 2010

                                 ______
                                 

                           HON. JIM McDERMOTT

                             of washington

                    in the house of representatives

                      Thursday, November 18, 2010

  Mr. McDERMOTT. Madam Speaker, in the midst of this recession, the 
American people face impossible job prospects, decreased wages, and the 
continuing decline in the value of their homes. Reports show that 23 
percent of all residential properties are underwater and the 
foreclosure rates are only rising. Underwater homeowners are often 
ineligible for refinancing, and are kept from restructuring the 
mortgage debt on their primary home in bankruptcy. With banks being 
largely ineffective in modifying loans, homeowners are left with little 
choice but foreclosure. The American people deserve better, and fixing 
this problem will help the economy and American families.
  The ``Protecting Homeowners and Foreclosure Stabilization act of 
2010'' will give homeowners the ability to restructure the debt on 
their primary residence in bankruptcy. Furthermore, homeowners will 
receive increased protection from foreclosure by the automatic stay in 
bankruptcy, and increased time to file a plan in Chapter 13. Homeowners 
facing foreclosure have the additional benefit of waiver of the pre-
filing counseling requirement to ensure minimal delay in accessing the 
court. As a condition of filing, homeowners must certify that they 
requested a loan modification from their bank.
  The ability to restructure the debt of all assets in bankruptcy has 
long been enjoyed by businesses. There is no reason that the American 
people should receive fewer protections than businesses do in 
bankruptcy. The ``Protecting Homeowners and Foreclosure Stabilization 
act of 2010'' will help put American homeowners on equal footing with 
the banks when working to save their homes.

[[Page E1980]]



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