Washington, DC – December 2, 2009 – (RealEstateRama) — Families struggling with toxic drywall in their homes will now have one more piece of ammunition when they negotiate with banks and mortgage servicers for relief: a resolution from the United States Congress.
By a broad bipartisan vote of 419 to 1 the House of Representatives today approved Congressman Glenn Nye’s resolution (H.Con.Res.197) asking banks and mortgage servicers to provide assistance to homeowners struggling with toxic drywall in their homes. Nye has been leading the effort in Congress to deliver relief to families in Hampton Roads affected by toxic drywall.
“I have seen firsthand the physical, emotional, and financial burden toxic Chinese drywall creates,” said Congressman Nye in his speech to the House of Representatives. “At a time when the economy is already struggling, this hardship is more than families can sustain. Today, I urge my colleagues to support this resolution encouraging banks and mortgage servicers to work with their customers by allowing a grace period on their mortgage payments until they get back on their feet.”
Due to the health effects caused by the toxic fumes emitted by the drywall, many families have been forced to leave their homes and move into rental housing. These families are now being forced to pay for both the mortgage on their original home as well as the rent on their temporary residence.
Some mortgage servicers have been willing to grant temporary forbearances to help alleviate the burden on affected families while they try to work out a long term solution, but other lenders have been less cooperative.
“Recognizing this issue in Congress and formally asking lenders to be a part of the solution will give families more leverage when working with banks or mortgage holders who may be unfamiliar with the seriousness of this problem,” said Congressman Glenn Nye.
Congressman Nye first introduced his resolution on October 8th, the same day that many homeowners from Hampton Roads traveled to Washington to meet with lawmakers to discuss the toxic drywall issue. A companion resolution was also introduced in the Senate by Senator Mark Warner and passed on November 10th.
Today’s vote marks Congressman Nye’s second legislative victory in recent months in his fight to help families with toxic drywall. In late October, the House passed Nye’s amendment to allow homeowners with toxic drywall to qualify for disaster assistance loans from the Small Business Administration. That proposal is currently awaiting action in the Senate.
