One of the most powerfull allies of a distressed homeowner facing foreclosure, might be a Bankruptcy Judge if the House and Senate have their way in new legislation allowing judges to "cram down" home loans.
In Bankruptcy proceedings the terms of every loan is fair game for a judge to adjust except for the loan on a primary residence.?? A Judge can modify the terms of a second or even third home, sports car, jet ski, you name it the judge can modify the terms, except when it comes to your primary residence.
In stemming the tide of foreclosures, everything has been tried from voluntary loan modifications from banks, to pay loan servicers more to avert foreclosures than to allow them, subsidize interest rates or principal values with taxpayer money, you name it they've tried it.?? It looks like the last best resort may be to allow judges the opportunity to modify the terms of loans for deserving homeowners.
What do you think??? Should Judges be allowed to modify the terms of a home loan on a primary residnence during Chapter 13 proceedings??? Leave your comment below.
Someone who is willing to go through the hassle and embarassment of Chapter 13 is obviously dedicated to saving their home and is committed to finding some resolution.?? As Congress and the Senate debate the potential effectiveness of allowing judges to adjust loan terms on primary residences homeowners are left on their own to try to find solutions to their troubled loans.
For help negotiating a loan modification with your bank, visit MBA Commercial and get your own free loan modification kit, or call 800-958-1952????any time to liste to our??recorded message explaining loan modifications.
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