Please join us at BlueNC.com on Sunday, March 1, at 4:00 p.m. for a live blog chat with Rep. Brad Miller the author of the bankruptcy provision in the Helping Families Save their Homes Act of 2009 or H.R. 1106
As I sat and listened to the debate on H.R. 1106 on Thursday, I could not believe my ears. North Carolina Rep. Virginia Foxx blamed the mortgage crisis on the welfare mentality of dishonest borrowers who never intended to pay the money back. I have never been so ashamed of something that I personally did not say or do. It was disheartening to hear such bigotry coming from someone representing North Carolina in congress.
Fortunately, Rep. Alcee Hastings of Florida set Foxx straight.
As debate on the Helping Families Save Their Homes Act of 2009 or H.R. 1106 heated up on Thursday, House Republicans spun one lie after another in an attempt to turn the bill into something it is not. As heard above, some of the biggest lies were told by North Carolina's own congresswoman, Rep. Virginia Foxx. At times I couldn't tell if her lies were intentional or if she really is that stupid. Now we need to set the record straight.
One of the major memes coming from the Republicans and some Blue Dogs is that allowing bankruptcy judges to alter mortgage loans on family homes will punish homeowners who have been responsible and paid their mortgages on time. Punish them? How? If that's true, don't all bankruptcies punish those who pay their bills on time? Why does helping keep families in their homes punish other homeowners any more than say helping a millionaire hang on to his yacht or a real estate developer hang on to his properties once they go belly up? As a taxpayer, if I'm on the hook for something, I'd much rather it be to keep a family in their home than a Donald Trump or Paris Hilton sailing on their yacht. Wouldn't you?
Another meme being pushed by Republicans and those opposing this bill is that the people who will be helped were irresponsible. Apparently, it is irresponsible to lose your job and it is irresponsible to suffer from an illness or to be in an accident that overwhelms you financially even when you have health insurance. Apparently, it was irresponsible for many first-time home buyers to trust the bankers and real estate developers who urged them into mortgages they could not afford.
Almost 30% of bankruptciesare a direct result of medical expenses that overwhelm a family's finances after an illness or accident. When you add in those bankruptcies caused when a job or major portion of income is lost due to an illness or accident that number climbs to almost 50%. Surprisingly, the same Harvard study also showed that about 75% of the people declaring bankruptcy due to medical expenses had insurance at the time of their illness or accident. Do Republicans truly want us to believe that all of these people are irresponsible?
Most bankruptcies are triggered by a job loss, medical expenses or divorce. Some sources say as many as 91%of all bankruptcies are due to one of those three events, any one of which can send a person into bankruptcy with or without a large amount of consumer debt in their name. Do the Republicans and their Blue Dog partners think that we should require an overwhelming majority of responsible homeowners to lose their homes just so a super minority that may have acted irresponsibly can be punished?
These are just a couple of the claims made by Republicans. At BlueNC we are running a series of articles and will work an action plan to help Congressman Miller push this important part of the legislation through the House and Senate intact. We can use all the helping hands we can get, so stop by tomorrow and join in the fun.
Remember, Congressman Brad Miller will be with us tomorrow at 4:00 p.m. to fill us in on the facts about this legislation. Please join us and have your questions ready.