Senate Majority Leader Reid Promises to Override any Veto of Proposed Bankruptcy Law Reform Bill

United States Senate Majority Leader Harry Reid announced Wednesday that he planned to challenge a threatened presidential veto of a recent bill put before the Senate aimed at fighting the rising trend in foreclosure homes but changing current bankruptcy laws.

Senate Majority Leader Harry Reid

The White House has hinted in the past week that in order for the bill to pass, aspects of it will have to change. Citing years of frustration in trying to work with the White House for legislation, Reid promised to fight any presidential veto and seek to override it with a majority vote in the Senate.

The controversial bill proposed would work by allowing bankruptcy judges to waive portions of debts owed on delinquent mortgages for homeowners, as well as award billions of dollars nationally to rehabilitate abandoned and foreclosed houses. The White House has stated its position that the bill will be too costly in the recent tight economic times, and that it unfairly awards too much money to lenders and real estate foreclosure speculators.

Reid, citing support from community banks and other smaller financial institutions, said he would not consider removing the provision allowing judges to let some mortgage debt slide. Some of the bigger national banks are opposed to the bill, being that they control the majority of mortgages in the country, but Reid admits there is little they can do to sway these banks, though he hopes they will bite the bullet for the sake of the housing market, economy, and millions of American citizens facing mortgage defaults.

It seems citizens and lawmakers alike are more ready than ever to start enacting policy, procedure and statutes to help fight the mortgage and foreclosure crisis. A similar bill is currently being proposed in the House of Representatives that would award $15 billion to borrowers in default trouble. Many state governors have also risen to the task of finding ways to move money to homeowners and ease the urgency of homeowner debt in order to fight home foreclosures, which are wreaking havoc on the housing market and economy.

If Reid is able to sway the Senate to override a presidential veto, it could be a substantial step that paves the way for even more legislation designed to help homeowners behind in debt on their mortgage.