The lenders and bankers are fighting the new bankruptcy bill big time because they hate when government meddles in their business. Well, they hate it when it affects their bottom line. But hey, they sure don’t mind government assistance if it means bailing their butts out of the the mortgage waters. Even if they were the ones that caused the home & loan ship to start sinking.
The banks cry for help – “Hey, don’t help those suckers who bought our crappy loans! Help us because we sold the crap and we gave you millions for your political campaign from the crap in which we profited!”
Come on guys. You can’t keep playing this immature school yard game. You guys look like little kids that choose sides whenever it benefits your team or agenda. You guys cry wolf when our government attempts to step in to help the little people that you sold these toxic loans to and caused our country to have a mortgage, housing and quite possibly a world economic crisis. But, when it serves your agenda, you can claim bankruptcy because you can’t survive as a result of selling too many American homeowners crappy loans and they aren’t paying so you have the right to claim bankruptcy and the people who you sold the crap to do not.
What a joke. Only in America!
The new bankruptcy bill will allow bankruptcy courts to have the discretion to perform loan modifications for bankruptcy petitioners. Bankruptcy judges already have the ability to modify the terms of other debt, including car loans and even 2nd homes, to help consumers with a reasonable payment plan.
Congress voted that primary residences would not be allowed to be modified when they rewrote the bankruptcy laws in 1978. I wonder who swayed that decision (banks maybe)?
Senate Majority Leader Harry Reid, D-Nev., has incorporated provisions of a previous bankruptcy cram down bill, S 2136, into a broader piece of legislation, the Foreclosure Prevention Act of 2008.
The new bill, S 2636, also includes several programs that lenders support — including $200 million for pre-foreclosure counseling and authorization for state housing finance authorities to issue $10 billion in additional mortgage revenue bonds to refinance subprime loans and provide mortgages for first-time home buyers.
A new report from the Congressional Budget Office says that if this new bankruptcy bill passes, then lenders and servicers will voluntarily offer more loan modifications to struggling borrowers and I have to agree. It only makes sense that if this is passed, lenders and servicers will be terrified that many borrowers will tie up these mortgages in bankruptcy court. So, naturally, they will now assist more borrowers who are in need of mortgage help and expand their loss mitigation efforts.
That’s what these lenders and servciers are scared of. That they will be “forced” to help everyone that needs to be helped and in order to do that they will have to spend millions on their loss mitigation efforts.
Right now, they are simply flying below the radar now by doing their little political song and dances with their new band, “Hope Now” that is touring American cities across the country to sold out foreclosure crowds.
Senate Majority Leader Harry Reid has scheduled a vote on Tuesday in which the Senate will decide whether to consider the new bill, introduced Feb. 13, without first holding hearings in as many as four committees
More from Inman:
Democrats claimed to have forged a bipartisan compromise in a House version of the bill, HR 3609, that was approved by the House Judiciary Committee Dec. 12 (see Inman News story). But Creighton said that legislation has yet to come to a full House vote because it has the support of only two Republican lawmakers and is opposed by some Democrats.
The Senate version of the cram down bill, S 2136, still awaits a vote by the Senate Judiciary Committee and could proceed independently if opponents are successful in stripping of bankruptcy cram down language from S 2636.
Without the cram down provision, Creighton said, “This is basically non-controversial legislation.”
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i wish our congress do the right thing because of lax of lending that’s why these things happening millions of homeowners given toxic loan and making them believe they could have a piece of american dream which is not true and its a scheme mastermind by the wall street pigs,so real estate agent,loan officer whose only thinking for his own interest because of that YSP homeowners who could qualify for prime they dont give it to them so they could have more commision,appraisser who inflate the home value they are all in cahoots in this big time scheme. banks and servicers dont mind if the feds bail them out but it there interest will be jeopardize they wine or cry and they dont think or care if its destroy family loosing a home it destroy family all they care is for there own interest and profits that’s why they lobby in the congress those who are pigs who take money from this banks,servicer and the wall street pigs that’s why our economy get affected and dollar are loosing value. what they do is they packaged the loan into securities and sliced and diced it who know who own the loan if goes from other countries. i dont speak good english and not good grammar but i know this people banks,servicer and tha wall street pigs are crooked i hope they burn in hell and now those CEO’s are qutting there job so if things goes wrong the govt dont go after them and took millions of money in therte pocket. sp god bless america and i hope our gov’t do the right thing.
If you want out from under your mortgage and the lender is not communicating with you on a modification, why can’t you just deed them the property ( not a deed in lieu). Just fill out a warranty or quit claim, go to the courthouse and record it and mail the lender a copy.
They now own the property with their own loan on it.
How can they foreclose on property they own?
Is that legal? Never heard of this route before.