Posts tagged as:

bankruptcy cramdown

BlackRock: Consumers need a new type of bankruptcy that would better aid homeowners

by Moe Bedard

Jan. 21 (Bloomberg) — Consumers need a new type of bankruptcy that would better aid homeowners and be fairer for mortgage-bond investors than the existing U.S. loan-modification program, BlackRock Inc. Vice Chairman Barbara Novick said.

BlackRock, the world’s largest asset manager, proposes creating a bankruptcy option under which terms of a consumer’s mortgage can be eased, [...]

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Mortgage Bankruptcy Cram-Down Bill Fails, Yet Again

by Moe Bedard

The banks win and homeowners loose as the glorious people who are supposed to represent the people, the U.S. House of Representatives voted to slam-down the cram-down measure that would have allowed bankruptcy judges to modify mortgages in a court of law for struggling homeowners.

The home mortgage bankruptcy bill or commonly referred to as the “mortgage [...]

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House Democrats Bring Up Mortgage Bankruptcy, Yet Again

by Moe Bedard

House Democrats are bringing up mortgage bankruptcy and I wanted my homeowners readers to know that blah, blah, blah…blah-blah. Yes, this Washington bankruptcy flap coming from Democrats over the last two years is getting rather old folks. So old that the only word that comes out of my mouth to comment on this news is blah, blah, blah.

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Will filing bankruptcy stop foreclosure?

by Moe Bedard

Unfortunately, many homeowners simply don’t know what to do when they are in foreclosure. I get many emails asking me, “Will filing bankruptcy stop foreclosure?”
Well, yes and no!
Many homeowners will file for Chapter 13 specifically to stop their sale date. Only to find out later, that their mortgage is not included and now they may [...]

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Remove Your Second Mortgage in Bankruptcy

by Moe Bedard

Current bankruptcy law allows judges to approve the loan modifications of the terms of certain debts. But is it possible to remove your second mortgage in bankruptcy?
As most of us know, your first mortgage is not allowed to be claimed. But not everyone knows that in the case of second mortgages, if the value of [...]

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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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Mortgage Bankruptcy Bill Passed by Congress

by Moe Bedard

After almost two years, it now looks like bankruptcy judges will soon be allowed to offer loan modifications through bankruptcy court as a last resort for a homeowner to stop foreclosure.
The process of claiming bankruptcy on your mortgage has been dubbed “cramdown.”
Under current BK laws, bankruptcy courts may reduce many forms of debt for struggling [...]

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