bankruptcy cram down law
A House committee is scheduled to vote on a mortgage bankruptcy bill today that would allow judges to modify subprime and nontraditional loan terms on a borrower’s primary residence. Facing pressure to help constituents avoid foreclosure and bankruptcy, legislative officials have proposed a mortgage-mess remedy to bolster President Bush’s plan to freeze interest rates.
The legislation calls for an extension of a judge’s power to shrink the size of home loans for bankrupt homeowners. The move is being praised by consumer advocacy groups who say the bill is a step in the right direction for Congressional action on the mortgage crisis. However, lenders and the banking industry have been ardently opposed to the bill claiming it could raise interest rates for all homeowners and rattle the market for securities backed by these loans.
Scott Talbott, senior vice president of government affairs at the Financial Services Roundtable said, “We oppose the changes because the judge has the new power to cram down a mortgage, the rest of homeowners and future homebuyers will face increased interest rates. That is counter-productive to the housing market.”
Contingencies on the bill would limit its authority to seven years and only give bankruptcy judges the power to alter the terms of subprime and nontraditional mortgage products. It would also give judges the ability to mark certain debt as “unsecured” if a borrower owes more money on a house than the house is actually worth. This will make it far more difficult for creditors to collect their debt.
The bill’s attachments would also require the Government Accountability Office to conduct a study on the impact of the bill. And judges would only have the ability to alter terms on loans originated between 2000 and 2007.
Furthermore, the bill still has a long way to go and many compromises will be considered before it becomes a law.
Siddique is real estate investor for over 22 years and President of http://www.butterflylister.com
Download Free How to sell your Home for Full Price in any market.
|
|
CRAMDOWN: Renegotiating Mortgages, Car Loans, Student Loans, Credit Card Debt, Taxes & Other Obligations in the Age of Wall Street Bailouts $9.95 This fall, Silver Lake Publishing is “crashing” into retail stores a new book on loan mods and other renegotiations. CRAMDOWN: Renegotiating Mortgages, Car Loans, Student Loans, Credit Card Debt, Taxes & Other Obligations in the Age of Wall Street Bailouts follows in the series that has included the national bestsellers Identity Theft and Scams & Swindles. This is the first comprehensive book on t… |
|
|
Die #00cram down power#01 des amerikanischen Konkursgerichtes im Reorganisationsverfahren nach Chapter 11 des Bankruptcy Code (European university studies. Series II, Law) (German Edition) $81.95 … |
