There is currently a bill in the US Senate dealing with the predatory lending crisis, and there is a small provision in it that is really important to keep. The provision lets judges who preside over bankrupt homeowners modify terms of loans to make them affordable. Back before we started selling homeowners down the river, this was the law. Let's just say the changes have not yielded positive results.

This bill would protect an estimated 600,000 people, and save homeowners surrounding foreclosures an estimated 72 billion dollars in lost home values. And, it costs us nothing. It simply gives judges the latitude in bankruptcies the same latitude they have if you showed up to bankruptcy with other assets- like investment income, a boat, etc.

This is a sensible, win-win measure that could be really, really important to keeping people in their homes. And right now, Arlen Specter is a key vote in getting this out of the Senate. (A companion bill would likely pass the House.)

I just called Arlen Specter's office, and I would strongly encourage you to do the same. All you have to do is say something like this:

I encourage Senator Specter to support the Durbin Bill- Title IV of Senate Bill 2636, to allow modifications to mortgages in the bankruptcy process.

His phone number is (202) 224-4254, and your one minute call can really make a difference.

Below the fold, is a memo from the Center for Responsible Lending about why this bill is so important. One minute can make a difference.

Call today!