WASHINGTON -- More than 15 civil rights, consumer and housing groups joined together to issue a statement condemning the U.S. Senate for refusing to include changes in the bankruptcy code in the Foreclosure Prevention Act.
"Any final bill hammered out between the U.S. House and Senate that is a serious effort to stem the foreclosure crisis must include meaningful relief to families to modify their mortgage in bankruptcy," the statement said. "Bankruptcy relief will stabilize communities, keep more than half a million families in their homes and provide lenders at least as much income as they would receive through foreclosure."
The joint statement was signed by a host of advocacy groups, including the Center for Responsible Lending, ACORN, the Consumer Federation of America, Consumers Union, the NAACP Legal Defense Fund, the National Association of Neighborhoods and the National Council of La Raza.
The Senate housing package misses the single most significant step needed to help the 20,000 American families with subprime loans who are losing their homes each week through foreclosure: the bankruptcy amendment, the statement added. The groups also said the current legislation was l loaded with special considerations for mortgage companies and builders that does little for homeowners who were sold predatory loans by mortgage lenders.
