Submitted by Roldo on Thu, 04/30/2009 - 16:10.

Sen. George Voinovich voted with the big banks today to reject President Barack Obama’s attempt to help bailout victims of foreclosure.

The Senate bill could have helped 1.7 million families facing foreclosure by allowing bankruptcy judges to modify their mortgages.
Major U. S. banks, of course, have walked away with billions of dollars in bailouts. They can’t be allowed to fail, they say. Ordinary people with overextended mortgages, they can allowed to fail, says Voinovich.
It’s not surprising for Voinovich. He’s allied himself with bankers and the rich throughout his career.
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That’s a complex piece of legislation, the WAPO article convolutes and confuses the issue. It misrepresent it to some degree. That happen allot, the media distort the legislation, in this case it compares it with bankruptcy which is not relative.

I read the legislation and so should anyone that ventures to have an opinion on it. I am seeing allot of misrepresentations, that legislation would have repercussions as it is written. Basically increasing the federal roll in mortgage lending significantly.

I see nothing in the legislation that cover instances of principal forgiveness, which really cannot happen. You put a sign on road reading this way to principal forgiveness and watch how busy that road becomes.

We have a system that allows people to over do it, do you think it wise to offer forgiveness for that? Wise for all of us as tax payers to cover that? Its not and that how the law is being misrepresented.

Is bankruptcy a golden solution? Its not, nether is this legislation. Many cannot afford the home and many are high risk and the potential in loss is there as a tax liability.

Refinancing is already available, why would the banks be concerned, they would be happy to hand all the high risk loans over as they default. They stand to loose more in the end, they are already selling short.

There are loans defaulting because of interest only, and also home equity loans that exceeded what the home was worth. People are indebt over there heads come into uncle Sam’s arms.

So you want to refinance, why within a year it will be up for auction, or another, buy a different house for less.

The big fallacy is that you are going to keep your home and owe less, nope, you owe more and to the FHA. Read it….