Why Republicans Should Support Judicial Mortgage Modification

HOW THE REPUBLICAN PARTY CAN POSITION ITSELF AS THE CHAMPION OF THE WORKING CLASS AND THE DEMOCRATS AS THE PARTY OF WALL STREET AND THE BANKERS WHO BROUGHT THE ECONOMY DOWN

And address the foreclosure crisis.

He won, and he is acting like it.
Turning his back on transparency, he pushed through the “stimulus” bill without hearings or any public ability to even read the bill.
It was a political exercise, not policy motivated.
Obama showed the Democrats in Congress there is a new sheriff in town, and he is it.
The skids are greased for the national health care and other programs he will push.   No concern for bi-partisanship, he proved he has the votes.
The Democrat Congressional leadership, having rolled over once, is now trained.
The next bill coming down the pike is the housing plan.
With the exception of judicial mortgage modification, it is another expansion of government bureaucracy, increases spending, and rewards the same mortgage companies who created the current mess.
These are the provisions that inspire the “tea parties” and the CNBC rant about paying your neighbors mortgage.
Here is the opportunity:  pass the entire package in the House the first week of March.
In the Senate, pass only the judicial mortgage modification.
Let the Democrats pass yet another program to bail out the banks and mortgage companies, paying the mortgage companies to modify the bad loans they already made.
Most foreclosures will not be stopped by judicial mortgage modification, because the homeowner cannot afford to pay the mortgage, even if it is reduced to the value of the home.

Allowing bankruptcy courts to modify mortgages secured by principal residences merely puts them in the same class as any other mortgage, which can already be modified in bankruptcy court, commercial mortgages, those on cottages, second homes, rental properties.
It cost the Treasury nothing.
Take the home with the 200K mortgage that is now worth 150K.
It will be foreclosed,  after the owner is evicted, and sold for what is worth, 150K.
Changing Chapter 13 law to allow that owner to pay 150K for the home through the bankruptcy court keeps one more house from going on the market, further depressing home prices and keeps a local taxpayer in place.
As the law stands, the only person who cannot buy that house for what it is worth is the homeowner.

Why Republicans Should Support Judicial Mortgage Modification

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