DATELINE: WASHINGTON The following is the letter released Monday by Lawrence Summers, director-designate of the National Economic Council for the Office of President-Elect Obama: sent to the leadership of both parties in the House and Senate 3. Launch a Sweeping Effort to Address the Foreclosure Crisis: The President-elect has directed his White House and Cabinet…
Monthly Archives: January 2009
Mortgage Modifications Failing
The voluntary mortgage modifications announced with much fanfare by various mortgage companies are failing, according to paper by Alan M. White of Valpairaso Law School. Not only are most borrowers unable to make the required payments, many end up owing more than before the modification agreement.
New Bankruptcy Law
Citibank announced support for the Chapter 13 bankruptcy reform legislation which would allow cramdown of mortgages secured by residences. Not all bankers are on board. One trade group dumped on Citibank for supporting the bankruptcy reform that would help homeowners avoid foreclosure by allowing bankruptcy courts to re-write mortgages down to the balance owed, and…
How Will Bankruptcy Affect My Credit?
There is no clear answer to this question. unfortunately, if you are behind on your bills, your credit may already be bad. Bankruptcy will probably not make things any worse. The fact that you’ve filed a bankruptcy can appear on your credit record for ten years from the date your case was filed. But because…
CONSOLIDATION LOANS AND REVERSE MORTGAGES
by NCLC It is almost never a good idea to mortgage your home to pay off credit card and other unsecured debt. By trading in credit card debt for a mortgage loan, you risk the loss of your home if you continue to have financial problems. Refinancing an existing mortgage may make sense, but generally…
