WASHINGTON – As homeowners seek mortgage relief during the worsening economy, U.S. Rep. Diana DeGette (D-CO) today supported H.R. 1106, Helping Families Save Their Homes Act, which passed on a vote of 234 to 191. The Helping Families Save Their Homes Act builds upon President Obama’s comprehensive Homeowner Affordability and Stability Plan.  The President announced details of his plan yesterday, including a website, www.financialstability.gov, with an eligibility quiz for homeowners struggling to make their payments.

“As millions of hardworking Americans face losing their homes during this economic crisis, the House today took another step to help our communities and the ailing housing market,” said DeGette. “This bill improves the ability of lenders to work with responsible homeowners who face financial calamity unless sensible modifications are made to their mortgages. Not only will this measure help stabilize households, but it is also designed to prevent further foreclosures from hitting the mortgage market and harming our economy. Congress has more work ahead with President Obama to address the housing crisis in this country.”

This Act gives bankruptcy judges the ability to modify existing mortgages for families who file for Chapter 13 bankruptcy as an incentive to spur lenders into voluntarily modifying loans.  Without spending one taxpayer dollar on this legislation, it could keep hundreds of thousands of families across the country from facing foreclosure and losing their home. It gives lenders the confidence to modify loans by protecting them from some lawsuits.  The costs to lenders are less when loan modifications can be made as opposed to under foreclosures. And it spurs mortgage refinancing by fixing the Federal Housing Administration’s Hope for Homeowners Program, reducing fees and offering new incentives for lenders. In Colorado, there are 57,068 past due mortgages.