Still Hope for Mortgage Modifications in Bankruptcy
Dec 7th, 2009
by Doug Jacobs.
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.
Posted in: News.
