If you don’t know by now that lobbyist have been shaping our country for years by selling their principals self interests needs and wants to lawmakers, well here’s the latest in the foreclosure buzz. Congress people and have been reviving a barrage of overtures from the mortgage and banking industry lobbyists to overturn or forestall an aggressive new legislative proposal that could put tens of thousands of financially-stressed American home owners into loan modifications, even if their lenders and servicing companies have to be begrudgingly negotiating table.

With this newest bill, which was sponsored by four Democratic senators active in foreclosure issues, all lenders and servicers doing business in the U.S. would be barred from foreclosing on primary homeowners unless they had discussed reasonable modification options with the borrower.

Imagine this, stiff fines and other legal penalties would hit lenders who don’t go along with the government program.

And if that weren’t enough — all lenders would need to perform what the bill calls a “net present value” assessment for every seriously delinquent borrower — that is, a financial test assessing the dollar benefits of a modification of loan terms, compared with those of a foreclosure.

Here’s how it works: If the net present value of a loan modification exceeded that of a foreclosure, lenders would be required by federal law do so.

For homeowners still unable to handle the monthly payments offered under a modification plan, the proposed new law would create a multi-billion federal fund for states to make forced loans or grants to prevent foreclosures.

The bill, another Obama administration bailout, is dubbed the Preserving Homes and Communities Act. The promoting senators said they plan to rush the legislation hard because the slow pace of loan modifications against the looming foreclosures ahead disappoints them.

Though certain to be opposed by banking and mortgage lending groups, the new proposal could get serious traction in the Senate, and is virtually certain to get strongly support in the heavily Democratic House. In my opinion, the free market should take care of itself. This bail out will only continue to weaken our dollar and create hyperinflation in the years ahead.

This is Jaz Zydenbos saying Happy Trails to you until we meet again.