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Calhoun Statement: Reaction to the Democratic Leaders Plan on Foreclosures

Wednesday, October 3, 2007

We're glad leading members of Congress want to provide more legal and counseling help to the millions of families who have or will lose their homes to foreclosure because of reckless subprime lenders. Congress also must act quickly to change the bankruptcy code to allow judges to modify home loans on primary residences. Right now the code makes the family home the only asset the courts can't save from foreclosure, even though vacation and investment homes, family farms and commercial real estate can be protected. The change would help an estimated 600,000 families who face imminent danger of losing their homes from abusive adjustable-rate loans carrying monthly payments that are about to skyrocket by 30 percent or more. And it would do so while guaranteeing lenders at least the value they would recover by foreclosing.

For more information: Kathleen Day at(202) 349-1871 or kathleen.day@responsiblelending.org; Sharon Reuss at (919) 313-8527 or sharon.reuss@responsiblelending.org; or Ginna Green at (510) 379-5513 or ginna.green@responsiblelending.org.