FYI, Food and Water Watch put out a call to action for support of the Feingold-Gillibrand amendment that would allow small farms to be included in the foreclosure relief act.
The action alert:
Quoting:
Tomorrow, the Senate will debate legislation (the Helping Families Save their Homes Act of 2009, S.896) to help troubled homeowners restructure their mortgages to save their homes, but most family farmers who face foreclosures would not be protected by the proposal because their farmhouses are part of farm loans and not home mortgages. An amendment offered by Senators Russ Feingold (D-Wis.) and Kirsten Gillibrand (D-NY) (Senate Amendment S.A.1032) would extend similar loan protections to farmers. This common-sense amendment will help farmers stay in their homes and on their farms.
http://action.foodandwaterwatch.org/t/5985/content.jsp?content_KEY=5706
Here is the text of the actual amendment from the Library of Congress site:
Quoting:
SA 1032. Mr. FEINGOLD (for himself and Mrs. Gillibrand) submitted an amendment intended to be proposed by him to the bill S. 896, to prevent mortgage foreclosures and enhance mortgage credit availability; which was ordered to lie on the table; as follows:
At the end, add the following:
TITLE __--FARM LOAN RESTRUCTURING
SEC. X01. FARM LOAN RESTRUCTURING.
(a) Definitions.--In this section:
(1) FARM LOAN.--The term ``farm loan'' means a loan, including a loan guaranteed by the Farm Service Agency, made by a lender for any of the purposes described in--
(A) section 303(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1923(a)(1));
(B) section 312(a) of that Act (7 U.S.C. 1942(a)); or
(C) section 323 of that Act (7 U.S.C. 1963).
(2) LENDER.--The term ``lender'' means a bank or financial institution, including any subsidiary or branch of a bank or financial institution, that receives financial assistance under the Troubled Asset Relief Program established under title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.).
(b) Offer to Restructure Required.--
(1) IN GENERAL.--Except as otherwise provided in this section, each lender shall be required to offer to borrowers to whom the lender made a farm loan a restructuring program comparable to terms and conditions of the program established under section 353 of the Consolidated Farm and Rural Development Act (7 U.S.C. 2001) and in accordance with this subsection.
(2) REPURCHASING REQUIREMENT.--If a lender sells a farm loan in a secondary market but retains the right to repurchase all or part of the farm loan, the lender shall repurchase the farm loan if necessary to complete the restructuring required under this subsection.
(3) RECAPTURE PERIOD.--Beginning on the date of enactment of this title, the recapture period for any shared appreciation agreement required as part of a debt write-down under the loan restructuring program of a lender shall not exceed 5 years from the date of the write-down.
(4) BORROWER FUTURE ELIGIBILITY.--The receipt by a borrower of a debt write-down under the loan restructuring program of a lender shall not prevent the borrower from establishing eligibility for future loans from the lender.
(5) PRINCIPAL RESIDENCE.--In a case in which a borrower has given a lender a security interest in the principal residence of the borrower to secure a farm loan and the borrower is at least 60 days past due on any farm loan made by the lender, the lender shall offer restructuring for all farm loans made by the lender to the borrower, regardless of whether the farm loan secured by the principal residence of the borrower is 60 days past due.
(6) ABILITY TO MAKE PAYMENTS.--If a borrower demonstrates an ability to make payments on a restructured farm loan that has a net present value that is at least equal to what the lender would receive in case of foreclosure, the lender shall restructure the farm loan.
(c) Future Eligibility.--Except as otherwise provided in this section, a lender that received financial assistance described in subsection (a)(2) prior to the date of enactment of this title shall be ineligible to receive additional financial assistance under the program specified in that paragraph or any other Federal financial assistance, including through loan guarantee programs, until the lender offers to borrowers a restructuring program described in subsection (b), or begins the process to implement such a program, for farm loans made by the lender before, on, or after the date of enactment of this Act.
(d) Applicability.--
(1) IN GENERAL.--This section applies to any lender that receives financial assistance described in paragraph (2) or modifies the terms of assistance described in that paragraph on or after the date of enactment of this title.
(2) TARP TERMINATION.--In the case of a lender that received assistance under the Troubled Asset Relief Program established under title I of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211 et seq.), the farm loan restructuring requirements under subsection (b) shall not apply to the lender effective beginning on the date on which the lender completes repayment of that assistance, as determined by the Secretary of the Treasury.
(3) TEMPORARY WAIVER.--
(A) IN GENERAL.--The Secretary of the Treasury may temporarily waive the requirement for an individual lender to offer restructuring under this section if the lender demonstrates to the satisfaction of the Secretary that the requirement--
(i) significantly impacts the ability of the lender to provide farm loans; or
(ii) significantly worsens the financial stress test assessment of the lender.
(B) TERM.--The term of a waiver under subparagraph (A) may not exceed 30 days but may be renewed.
(C) NOTICE.--The Secretary of the Treasury shall provide notice to Congress and the public of any waivers made under this paragraph.
http://thomas.loc.gov/cgi-bin/query/F?r111:1:./temp/~r1112WUet8:e4418:
It will be discussed tomorrow, May 5, 2009. In case you want to voice an opionion to your representatives.