"Cram Down" Bill Requires Modification to be Effective
Give a person a fish and they will eat for a day. Teach that person how to fish, and they will eat for a lifetime. If the purpose of the mortgage “cram down” provision of the Helping Families Save Their Homes Act of 2009 is to help people keep their homes and stabilize the housing market, then lawmakers must be sure that the help and stabilization provided is more than a temporary fix. Any legislated adjustment of monthly payments must take into account maintenance and other associated costs inherent in the privilege of home ownership. Those motivated to keep their homes and who benefit from the Act should likewise have a sense of duty to maintain and increase the value of their rescued asset. This means upkeep, upgrades, and contributing to the value of the community as a whole. If the house is located within a homeowner’s association, this means the payment of association dues. Lawmakers: if you want the fix to be permanent, do not forget the duties that go hand in hand with privilege or your efforts will be for naught. Allow for the adjustment of payments to a level that, when other necessary fees, costs and assessments are added thereto, the payment is still fixed at an amount affordable to the homeowner being assisted.
The Bill has been passed in the House of Representatives and has stalled in the Senate. Indications are that the Bill will not be put to a vote until at least after the Easter break. Passage of the Bill in the Senate is far from a given. At least 60 affirmative votes will be needed to avoid a filibuster attempt by opponents. In the long run, unless significant alterations are made to the Bill to protect the interest of community associations, its defeat may be the best result.