Posts tagged as:

Bankruptcy to Stop Foreclosure

Treasury Says Cramdown Is Still Off the Table, Even Though Loan Modifications Aren’t Working

by Moe Bedard

As Mike pointed out today, the slow pace of loan modification progress has prompted some lawmakers to once again call for mortgage cramdown legislation that would allow bankruptcy judges to modify loans and keep borrowers in their homes.

But the Obama administration is signaling clearly that while it may be open to some new tactics, cramdown [...]

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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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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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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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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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Statement From Michael Calhoun – President, Center for Responsible Lending

by Moe Bedard

WASHINGTON, March 19  /PRNewswire-USNewswire/ — The Federal Reserve Board has repeatedly tried since September to contain the foreclosure crisis damage that’s spreading rapidly into the general economy. It has lowered key interest rates a half dozen times and, to quote the Wall Street Journal, “undertaken the broadest expansions of its lending authority since the 1930s.” [...]

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Judges would be allowed to rewrite mortgage terms under a Democratic plan. Critics fear rate hikes.

by Moe Bedard

WASHINGTON — Over the opposition of the nation’s lenders, Senate Democrats are seeking a change in the bankruptcy law that they say could keep hundreds of thousands of hard-pressed borrowers in their homes.
The proposal, part of the Foreclosure Prevention Act embraced by leading Democratic lawmakers, would allow judges to ease the terms of mortgage loans [...]

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Which is worse: Foreclosure or Bankruptcy?

by Moe Bedard

The single most important question consumers ask themselves during the present economic crisis: Is it better to lose your house to foreclosure or file for bankruptcy protection?
A foreclosure will remain on your credit report for 7 years, while a bankruptcy remains for 10 years. If you ever plan on getting any kind of loan, especially [...]

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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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