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

[simon2020]

H.R. 200 Bill

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

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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

[simon2020]

Not gonna happen

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

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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]

Alternative to Loan Modifications


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

[simon2020]

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

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

[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)

[Scooter10]

Here is the actual text of the bill as it relates to BK


First obvious CATCH...it only applies to non-traditional and subprime mortgages, second, if you sell the house in the future and the house increases in value, it appears the lender maintains a lien for the unsecured portion of their claim, also, it will only apply to loans that exist before the effective date of the law. It appears that this will add a layer to the income and expense calculation, if I am reading this correctly you only qualify for the write down if you cannot afford the current monthly payment.

So bottom line, as it is written right now, you can only modify the first mortgage if
1. the mortgage is sub-prime
2. You cannot afford the current monthly payment of your mortgage along with your other necessary expenses
3. The mortgage company maintains some sort of subordinate lien for the unsecured portion of their claim if you sell the house during your chapter 13 plan.

As it stands right now, this bill is garbage, sorry to say. Instead of doing all this stupid crap, they should just strike the wording in Sec 1322(b)(2) that states "other than a claim secured only by a security interest in real property that is the debtor's principal residence,"

sorry, I am dense.

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

[hereforinfo]

This cram down is not going to apply to those of you who have lost your job or are unemployed. Why? Because the bill states that you have to be able to afford the new payment. Obviously someone who is unemployed would not be in a ch 13, or not reasonably afford the mortgage payment. This mod will help those people who took the loans above their means. What a load of crap, especially considering that once the ch 13 term is up, they can sell the house and walk away with any profit. Sub-prime loans? Those are the people who had bad credit and a history of being irresponsible with finances. Yeah, let's bail them out, reward them and punish those who were responsible.

[CatsInTrouble]

SIMON

screw that. Thanks for pointing out the important parts of the boring legalese with your font and what not. I was able to see immediately what got you (or other BKers) excited and what points were most applicable here.

If a forum owner wants to take hard lines and ban people and etc, for silly things, fine, it's a big internet with a lot of clickable adsense on it.

[Never_Again]

Lazar, Someone already brought that up so chill out and relax. Are you the Grammar/Spelling Police?

Sheesh, forums are to help people, not condemn them to hell.

It's not like we're at some elementary school playground and secondly, what I posted was substance not eye candy junk.

Oh and by the way, do I need to ask you for a "hall pass" before proceeding to the principal's office?!

Let me guess... you have "Freedom of Speech?" LOL...

I can figure from the "The government has to do something for me, I am so screwed" mentality. Usually they are the ones that cry about their "free speech!"

The forum owner has freedom of speech, and they allow you to participate in it on their forum.

[HHM]

Lazar, Someone already brought that up so chill out and relax. Are you the Grammar/Spelling Police?

Sheesh, forums are to help people, not condemn them to hell.

It's not like we're at some elementary school playground and secondly, what I posted was substance not eye candy junk.

Oh and by the way, do I need to ask you for a "hall pass" before proceeding to the principal's office?!

LOL, not exatly the best way to respond to the forum owner

[simon2020]

lazar - Chill OUT





Lazar, Someone already brought that up so chill out and relax. Are you the Grammar/Spelling Police?

Sheesh, forums are to help people, not condemn them to hell.

It's not like we're at some elementary school playground and secondly, what I posted was substance not eye candy junk.

Oh and by the way, do I need to ask you for a "hall pass" before proceeding to the principal's office?!

[laz]

simon2020,

please stop with large colorful posts, stick to regular font size and black font is easiest to read.

Also, please refrain from using a single smiley as a reply. Posts need to contain actual content.

Dear mods, please keep an eye on this type of behavior.

[laz]

simon2020,

please stop with large colorful posts, stick to regular font size and black font is easiest to read.

Also, please refrain from using a single smiley as a reply. Posts need to contain actual content.

Dear mods, please keep an eye on this type of behavior.

[optimistic1]

Sorry, Im just trying to be optimistic about the whole thing, hence the name.

[NowImDownInIt]

The only good thing about it passing will be that there will be less foreclosures, so meanwhile the responsible person like myself, who understood that an ARM will adjust and your payment will increase and got a normal loan, will hopefully regain some value in my house.

If your gonna bailout the crooked banks, and the crooked STATED INCOME borrowers that created the whole mess, then they need to bailout the RESPONSIBLE borrowers that have lost all their equity as well.

But that would be in a perfect world, which, based on the signs of the times, we obviously do not even come close to that.

Okay, damn, you are getting a little personal there. Not all people in sub-prime crappy mortgages with crappy rates are crooks. Some of them are just people trying to live the beaten until almost dead American dream...

I was tricked into a mortgage, using my ACTUAL income (verified several times) by a mortgage broker trying to earn a buck. I was 19 years old. I ended up with a 10% interest rate on a 30 yr loan, making a $912 a month payment on an 877 sq ft house. Had I not been able to sell it in time, I would have foreclosed. Sometimes things just aren't what you think.

Shame on you for being upset that some people are being helped and you aren't... at least this time it's not big business benefiting in the end.