JP Morgan Securities analysts have admitted that mortgage modification in bankruptcy may be a ” necessary evil” to stabilize home values.
It ought to become harder for the banking industry to maintain that passage of a bankruptcy cram down bill will increase mortgage rates going forward, as the bill voted out of committee yesterday will apply only to loans in existence when the bill becomes effective.
Credit Suisse estimates that adding mortgage modification to the arsenal of bankruptcy judges might reduce the number of foreclosures by 20%.
Have you contacted your Congressman yet on this issue? Find your represenatives in Washington and speak out in favor of mortgage modification.