Posts tagged as:

mortgage cram down

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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Cram Down or Sham Town?

by Moe Bedard

OK, this Washington bankruptcy cram down BS is getting soooooo old. I have heard the same BK lip service for the last two years and it looks like I better get my homeowner boots on because here it goes again folks.
Yet another attempt in Washington to revisit the bankruptcy cram down has begun. Yawn…. I think [...]

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Principal Writedowns Make for Better Loan Modifications–But Nobody Does it

by Moe Bedard

President Barack Obama’s loan modification plan gives servicers all kinds of options for getting a borrower’s debt-to-income ratio down to that 31 percent threshold. They can extend the terms of the loan, lower the interest rate, and even–if they are so inclined–trim the unpaid principal balance of the loan itself. But the administration has been [...]

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Mortgage Bankruptcy Cramdown = Washington Showdown

by Moe Bedard

It looks like the controversial home mortgage bankruptcy bill will be delayed because of a severe snow storm that covered Washington D.C. today, forcing the U.S. House of Representatives to push back their bankruptcy votes to a later date.
The bankruptcy provision, known as a “mortgage cram-down,” would empower Federal Courts to write down the interest [...]

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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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