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December, 2009:

Call Congress for Help with Home Loans

Dec 10th, 2009
by Cathy Moran.
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The Conyers/Turner/Lofgren amendment to allow modification of home mortgages in bankruptcy will reach the floor of the House perhaps as early as today.

You can use NACBA’s toll free phone number to find your Congressman and be automatically connected with the office.

Here’s how:

1. Phone toll free at: 877.354.4958

2. Put in your zip code

3. When you reach the receptionist:

  • State your name
  • Say that you are a constituent
  • Ask the Representative to vote FOR the Conyers-Turner-Lofgren amendment (#201) to the Financial Services Reform bill.
  • This amendment will cost taxpayers NOTHING and will save millions of homes from foreclosure

We need an alternative to the farsical voluntary mortgage modification programs.  Speak up, today, for a meaningful alternative.

Still Hope for Mortgage Modifications in Bankruptcy

Dec 7th, 2009
by Doug Jacobs.
No comments yet
Still Hope for Mortgage Modifications in Bankruptcy
A bipartisan group of Representatives will offer an amendment to H.R. 4173 to allow bankruptcy judges to modify the loans of homeowners in a Chapter 13 Bankruptcy.  This amendment is very similar to H.R. 1106, the bill that went down to defeat last spring.
If passed, many homeowners will be able to keep their homes by filing a Chapter 13 Bankruptcy.  The Judge will be able to change the terms of the loans on the house by adjusting the interest rate, the length of the loan, and even the principal owed.
The Government’s voluntary mortgage modification programs have been a dismal failure. What is needed is this unbiased look at the situation with the teeth to force lenders to do something.
Although, simply bringing an amendment to an existing bill is a long way from passage, it does give hope to homeowners fighting to save their homes.

A bipartisan group of Representatives will offer an amendment to H.R. 4173 to allow bankruptcy judges to modify the loans of homeowners in a Chapter 13 Bankruptcy.  This amendment is very similar to H.R. 1106, the bill that went down to defeat last spring.

If passed, many homeowners will be able to keep their homes by filing a Chapter 13 Bankruptcy.  The Judge will be able to change the terms of the loans on the house by adjusting the interest rate, the length of the loan, and even the principal owed.

The Government’s voluntary mortgage modification programs have been a dismal failure. What is needed is this unbiased look at the situation with the teeth to force lenders to do something.

Although, simply bringing an amendment to an existing bill is a long way from passage, it does give hope to homeowners fighting to save their homes.

San Jose Mercury News urges judicial modification

Dec 5th, 2009
by Cathy Moran.
No comments yet

The national statistics on the woeful number of modified mortgages support the Merc’s call to pass mortgage modification legislation

It’s estimated that a cramdown law could reduce foreclosures by 20 percent. It would cut through red tape by forcing reasonable compromises in bankruptcy courts, which can already modify mortgages on second homes and yachts. Most important, it would provide that all-important stick: Modify more mortgages, or a judge will do it for you.

Certainly, the experience of my clients supports the national numbers.  While clients may be offered trial modifications (send us money while we shuffle your papers again), I’ve seen one permanent loan modification.

It’s depressing to repeat to clients that they have little or no negotiatino power with the lenders.  It continues to be depressing to the economy as the amount of bank owned real estate increases.

As the recession has played out, foreclosure is no longer just the  consequence of sub prime loans and over heated real estate market.  It’s reaching a much broader swath of families.  Falling home values make it economically rational to walk away from underwater properties.

We would all benefit from a legislative “stick” to balance the HAMP plan’s “carrot” for mortgage modification.