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bankruptcy loan modification

Solving the Mortgage Mess With Loan Modifications and Borrower Modifications

by Moe Bedard

Day points to two changes that need to be made to the program in order to see greater success: It must be mandatory for lenders rather than voluntary, and it must attack the principal of the loans rather than just the interest rates. Giving bankruptcy judges the power to modify mortgages on primary residences would [...]

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Loan Modification Can Stop the Foreclosure Crisis

by Moe Bedard

If we can spend $700 billion to bail out the brokers on Wall Street, the very least we can do is allow working Americans who are willing to repay their debts as best they can, under court supervision, the dignity of staying in their homes. With one in 10 homeowners behind on their mortgages, and 10 million foreclosures expected over the next several years, the time for meaningful action is now.

Mr. Conyers, a Democrat from Michigan, is the chairman of the House Judiciary Committee.

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U.S. House Approves Mortgage Bankruptcy Measure

by Moe Bedard

The House Panel passed a measure yesterday to allow bankruptcy courts to modify loans on primary residences for troubled borrowers.

The controversial legislation that has remained stagnate in Washington for more than a year seemed to be gain serious momentum as Obama took office and the Democrats gained more power on the Hill. The new mortgage bankruptcy rules being proposed would mean a huge victory for struggling homeowners who have had little to no protection when dealing with their lenders and mortgage servicers.

Loan modifications and mortgage “cram downs” AKA “principle reductions” would be eligible in bankruptcy court and allow judges to whack the values and mortgage balances on thousands and possible millions of homes.

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Why Loan Modifications Often Don’t Work

by Moe Bedard

Despite modifications, many homeowners are still underwater.

Borrowers who owe more on their homes than they are worth have little incentive to stay there, even if their payments are lower. “I’m a big advocate for principal reduction because when people are underwater by hundreds of thousands of dollars, they walk away,” says Moe Bedard, the founder of LoanSafe Solutions, a Corona, Calif.-based company that works with attorneys specializing in loan modifications.

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Cram Down Nation: Do Lenders Fear Obama?

by Moe Bedard

Obama Bankruptcy quotes from July 2008:

Families, he said, who “are being preyed upon by predatory lenders. If you’re protecting America, America should be protecting you from unfair bankruptcy laws.”

He said he would create a “fast-track bankruptcy practice” for military families, which would ease restrictions against declaring bankruptcy, eliminate “unnecessary” paperwork and “let them keep a greater share of the value of their home.”

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Mortgage Bankruptcy: Can Bankruptcy Save Your Home?

by Moe Bedard

I have been writing about mortgage bankruptcy for quite sometime and the how it would benefit struggling homeowners. So, I thought I would condense some of bankruptcy basics for you to study and get educated on the subject.

Please remember that Citi is the only lender that has agreed to cooperate with the new bankruptcy deal and it is with conditions. The bankruptcy bill has not been passed and conditions must be met to qulaify.

In a statement, Citigroup said it would support Durbin’s legislation provided that it applied only to mortgages in effect before passage of the act. To be eligible, borrowers would have to contact their lenders and try to work things out before filing for bankruptcy.

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Congress Forges Mortgage Bankruptcy Deal With Citi

by Moe Bedard

U.S. Senator Dick Durbin (D-IL), with Congressman John Conyers (D-MI), Senator Chris Dodd (D-CT), Chuck Schumer (D-NY) and Congressman Brad Miller (D-NC) announced that an agreement was reached with Citigroup today, on legislation that will allow homeowners at risk of foreclosure to alter the terms of their mortgages in bankruptcy.

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U.S. Rep. Bill Delahunt is Co-sponsoring Bill to Give Bankruptcy Judges the Right to Modify Mortgages

by Moe Bedard

U.S. Rep. Bill Delahunt  is upset with uncooperative lenders and mortgage servicers and says he is co-sponsoring a bill to give bankruptcy judges the right modify mortgages for homeowners.

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Foreclosure Fighter Obama Says, “Allow Bankruptcy Court Judges to Modify Mortgage Payments”

by Moe Bedard

Turn on the TV today, and there’s a pretty good chance you’ll hear the line, “and I approve this message.” 
Yes, we’re in the heat of one of the most competitive Presidential campaigns in modern history, with more advertising spend than any previous election. While it is possible to gleam information from these ads, as well [...]

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Developers use new laws to stave off foreclosure

by Moe Bedard

As residential and commercial real-estate markets falter, developers are increasingly turning to bankruptcy to stave off foreclosure on their troubled properties.
In the past, developers often filed for bankruptcy for the entire company, tying up all properties owned by their companies.
Changes to tax law and the U.S. Bankruptcy Code in the past decade enable developers to [...]

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Bailout includes no bankruptcy aid for homeowners

by Moe Bedard

The Wall Street rescue deal does not include a provision allowing judges to revise loans on primary residences.
LA TIMES WASHINGTON — As congressional negotiators labored over the giant financial bailout plan last week, business leaders saw little to applaud in more than a few of the ideas under discussion, including one that proposed changing the [...]

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Provision to Alter Loans Is Sought

by Moe Bedard

A push by Democrats to include in the proposed Wall Street bailout new legislation that would allow U.S. judges to modify mortgages for people in bankruptcy potentially could save hundreds of thousands of homeowners from future foreclosure, judges and other legal experts say.
The provision is being demanded as part of an effort to make the [...]

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Will Congress Give the Courts Power to Modify Mortgages?

by Moe Bedard

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)? 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 [...]

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Senator Clinton Speaks on Loan Modifications and Help for Homeowners

by Moe Bedard

Please Watch the CNN Money Video: Clinton – “The Time to be Decisive”

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Will the Bailout Help Homeowners on Main Street?

by Moe Bedard

If US Treasury Secretary Paulson and President Bush have it their way, the world’s largest bail out will give the US Treasury what is essentially a blank check to do with it as they please. Meanwhile, the tax payers and the homeowners footing the bill will get nothing, nada, go straight to foreclosure because we’re too busy bailing out [...]

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I’ll NOT have you pleading the case of greedy corporate opportunists that make their CEO’s filthy rich through the financial suffering of honest working men and women.

by Moe Bedard

These comments are in response to an anti-homeowner article by Steve Chapman of the Chicago Tribune tittled, “Democrats may commit the real mortgage fraud”. 
These are the voices of the American people, that you rarely get to read in these self serving articles by so called journalists.
Submitted by JJK;
Of course when corporations bankrupt after paying CEOs millions to do [...]

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Democratic proposal giving bankruptcy judges the power to force loan modifications

by Moe Bedard

Lobbyists Hope Bush Rate-Freeze Plan Prevents Democrats’ Bankruptcy Proposal on Home Loans
December 05, 2007: 06:23 PM EST

NEW YORK (Associated Press) – A White House plan asking lenders and investors to freeze interest rates on troubled mortgages could derail a Democratic proposal giving bankruptcy judges the power to force loan modifications.
Lobbyists for some of the biggest [...]

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House Bill Would Allow Bankruptcy Courts to Modify Mortgages

by Moe Bedard

This Bill right here would stop foreclosure for hundreds of thousands of homeowners and save them from their toxic mortgages that are eating them alive.
Under loan modifications, the lender and loan-servicing company change the mortgage terms to make them more affordable to the borrower. This can include lower interest rates and forgiving a portion of the [...]

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