Posts tagged as:

2nd mortgage bankruptcy

Durbin Gives Bailed Out Banks ‘Cramdown’ Ultimatum

by Moe Bedard

“The voluntary efforts by some banks to slow the foreclosure crisis and stabilize America’s housing market have not worked,” Durbin said during a housing forum at the Center for American Progress Action Fund. “Whether the bankers and mortgage servicers are failing because of intransigence or incompetence doesn’t matter … They have to do much better.”

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Band of House Dems Revisits Cramdown

by Moe Bedard

The Obama administration has all but abandoned it, and the Senate has already voted it down. But a proposal to allow struggling homeowners to escape foreclosure through bankruptcy got a boost Thursday from a small band of House Democrats convinced that voluntary mortgage modifications aren’t alone solving the housing crisis.

They have a point. Despite White [...]

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Homeowner-Aid Plan Caught in Second-Loan Spat

by Moe Bedard

The Obama administration’s $75 billion effort to help troubled homeowners avoid foreclosure has hit a stumbling block: a fight over how to aid borrowers who have more than one home loan.

The Treasury Department, scrambling to address the problem, is trying to persuade lenders to forgive or greatly reduce so-called second liens. But that effort has [...]

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A Solution to the Cramdown Impasse?

by Moe Bedard

The subject of cramdown legislation is widely attended to by consumers and corporate executives alike. Consumers are paying careful attention as the bill, if passed, could give desperate homeowners another exit strategy from serious hardships caused by the worsening economy.
Corporate executives argue that the legislation would result in higher interest rates for borrowers, however, most [...]

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Second Mortgages: What will be done about them?

by Moe Bedard

While President Obama, Tim Geithner and Ben Bernanke continue to advance plans to improve the economy offering answers about how homeowners, lenders and even judges can modify loans, one important piece of the puzzle is often left out: second mortgages.
Current legislation aimed at incentivizing lenders to modify first mortgages may not be enough to solve [...]

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