Obamas Foreclosure Plan – I Will Pay for Your Home!
This week, President Obama is planning to release an all new Foreclosure Plan, designed to help stem the flooding of foreclosures and bankruptcies in this struggling economy. According to the Mortgage Bankers Association, there was a record number 2.3 million home foreclosures in the US. That figure is more than double the volume from 2006 and key indicators show it is only going to worsen, much sooner than it will ever turn around!
A Few Keys to the New Obama Foreclosure Plan
One of the most important and likely positive keys to the new foreclosure plan, is that our Government will subsidize mortgage payments along with the banks who own your note! That’s right… Along with a reduced interest rate, the lenders will be asked to kick in a little toward your house payment and the taxpayers will match the same amount!
Along with the newly subsidized mortgages, the Obama Foreclosure Plan also calls for a Restructuring of the Current Bankruptcy Laws, allowing the Judge to modify your mortgage on the fly and be excluded from the settlement! Under current laws, once you file for bankruptcy protection, your home loan cannot be modified! As you can imagine, banks and lenders are not too keen about this idea, since homeowners can realistically just go broke, and not be held liable to their obligations!
Eugene B. Berman says...
The only effective way in which to address the present foreclosure crisis is to amend the Bankruptcy Code and allow Bankruptcy Judges to modify residential mortgages in the same way the court can “cram down” all other secured debts. Maybe an amendment to the Bankruptcy Law will force lending institutions to exercise better credit judgment and recognize that the lender must assume the risks of its credit decisions. The present Bankruptcy Code obsolves lenders of the risks of their own greed and predatory lending practices.
Link | February 17th, 2009 at 2:29 pm
house » Blog Archive » Obamas Foreclosure Plan - I Will Pay for Your Home! | Polemics says...
[...] unknown wrote an interesting post today onHere’s a quick excerptThis week, President Obama is planning to release an all new Foreclosure Plan, designed to help stem the flooding of foreclosures and bankruptcies in this. [...]
Link | February 17th, 2009 at 3:19 pm
Jeff Jones says...
I totally agree that anything that forces creditors to take one extra look at a potentially bad loan is a good thing.
I’ve always hated the fact that a company could allow a person to take a loan they barely qualify for and then cause them so much heartache foreclosing only to write the loan off of their books anyway
All this as an acceptable business loss.
Completely unacceptable to our economy in any condition but especially now.
Link | February 20th, 2009 at 11:28 am