Mortgage cramdown, or judicial mortgage modification, will help prevent home foreclosures and will NOT disrupt the residential mortgage lending market. So says a new study by the Federal Reserve Bank of Cleveland. For a less scholarly explanation of Chapter 13 judicial mortgage modification, see the L. A. Times article by Lew Sichelman. Perhaps my favorite…
Tag Archive: banking
Avoid Foreclosure With Non-Bankruptcy Cramdown?
Is your home worth less than what you owe on the mortgage, or mortgages? That is called: underwater. This encourages people to stop paying and let mortgage foreclosure happen, even if they can afford the payments. In Michigan now, for homes that have a mortgage more than half are underwater. Tune I have been singing…
Chapter 13 Bankruptcy Reform Update
Per O. Max Gardner, North Carolina bankruptcy lawyer extraordinaire: John Logan and the NACTT objected to the proposed Mortgage Bankruptcy Bill because it mandated direct payments on the modified mortgage. I have been a big supporter of Conduit Payments for years and we are working on a new Conduit Payment Rule for the WDNC. I…
Summers Endorses Bankruptcy Court Mortgage Modification
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…
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.
