*~*This would be awesome for HOMEOWNERS *~*

[NEWBIE911]

sorry, I am dense.

So under this law, if passed, the mortgage woulde sub-prime just to qualify??

Yes...


You are dense - what are you asking , if only su primes Qual? - yes, those and non-traditional (so far)

[simon2020]

Looks like the wheels are spinning faster for loan modifications in bankruptcy.

http://www.msnbc.msn.com/id/28641564/

[simon2020]

Alternative to Loan Modifications


Loan Modifications Don't Work: Here's a Better Ideahttp://seekingalpha.com/article/1155...-a-better-idea

[simon2020]

Not gonna happen

Latest news is Obama now opposes bk judges from modifying mortgages in ch 13.

************************************




Posted Jan 20, 2009, 02:46 pm CST
By Martha Neil

If they go bankrupt, real estate investors who don't live in the homes they purchase can ask a judge to reduce the principal balances on their mortgage loans.

But homeowners don't have the same "cramdown" right concerning their primary residence, under recent bankruptcy reform legislation. Unless the lender voluntarily agrees to reduce the principal balance, they must either find a way to pay what they owe (perhaps under modified interest terms) or, sooner or later, lose their homes, according to a lengthy Center for American Progress article about the current housing crisis.

In the wake of a growing tsunami of mortgage foreclosures across the nation, federal lawmakers recently proposed that economic stimulus legislation include a provision that would give bankruptcy judges the power to reduce principal balances for homeowners. However, that provision is opposed by President Barack Obama, reports the Hill, likely putting it on a slower track than advocates had hoped for.

Obama "committed to dealing with the [cramdown] issue after the bill passes, as did House Speaker Nancy Pelosi (D-Calif.)," the article says.

[simon2020]

H.R. 200 Bill

If anyone is interested, here are the details about the Loan Modification Bill H.R. 200.

************

Helping Families Save their Homes in Bankruptcy Act of 2009

- Amends federal bankruptcy law governing a Chapter 13 debtor (adjustment of debts of an individual with regular income). Excludes from computation of debts the secured or unsecured portions of:
(1) debts secured by the debtor's principal residence if the current value of that residence is less than the secured debt limit; or
(2) debts secured or formerly secured by debtor's principal residence that was either sold in foreclosure or surrendered to the creditor if the current value of such real property is less than the secured debt limit. Declares the credit counseling requirement inapplicable to a Chapter 13 debtor who certifies that he or she has received notice that the holder of a claim secured by the debtor's principal residence may commence a foreclosure on the debtor's principal residence. Requires the court to disallow a claim that is subject to any remedy for damages or rescission due to violations of state or federal consumer protection law, including the Truth in Lending Act, notwithstanding the prior entry of a foreclosure judgment. Allows modification of the rights of claim holders, in the event of a foreclosure notice for a chapter 13 debtor, among other means by:
(1) reducing a claim to equal the value of the debtor's interest in the residence securing such claim, and any adjustments to a related adjustable rate of interest;
(2) waiving early repayment or prepayment penalties; and
(3) extending the repayment period. Denies debtor liability for certain fees and charges incurred while the bankruptcy case is pending and arising from a debt secured by the debtor's principal residence, unless the claim holder observes specified requirements. Adds to conditions for court confirmation of a plan in bankruptcy that:
(1) the holder of a claim secured by the debtor's principal residence retain the lien securing the claim until the later of the payment of such claim as reduced and modified or the discharge of a debtor from all debts; and
(2) the plan modifies the claim in good faith. Excludes from final discharge of a debtor from all debts:
(1) any payments to claim holders whose rights are modified under this Act; and
(2) any unpaid portion of a claim as reduced.

Source: http://www.opencongress.org/bill/111-h200/show