No Help For Homeowners Per Congress

[car67]

http://biz.yahoo.com/ap/080926/financial_meltdown.html

I urge everyone on this forum to flood the offices of Congressmen!
This is total BS that main street gets no help but only the wharf rats who
wrote the loans get bailed out! What a crock!!!!

[JRScott]

I've wrote my congresswoman and senators already, I don't support the bill in any form. It is to costly and does not guarantee success. I see no reason to throw money we don't have at a half baked attempt to save it when about half of the economist agree that the crash will happen regardless.

Better to keep from running up the debt more until it is absoloutely needed to bail out FDIC insured accounts.

[fltoo]

They are against BK "judges" not being able to cram down, modify, etc.

There still might be something about government owned loans being modified.
I haven't heard anything more on it yet.

[chloe0724]

Pelosi told fellow Democrats during a closed-door meeting that the idea of letting judges rewrite mortgages to help bankrupt homeowners avoid foreclosure won't be a part of the emergency legislation. That provision, pushed by several Democrats, would be a deal-breaker for Republicans whose votes are needed to pass the measure, she said, according to lawmakers at the meeting.

I don't get this!!!!!!!!!!

[JRScott]

Chloe I tried to point out in another thread why the R oppose this.

They feel such a provision would cause banks not to lend money in the form of mortgages.

They feel that a bank will look at a person and then weigh in the possibility that person may at some future time file bankruptcy. They feel it will lead to one of two things, either the bank simply refuses to make a mortgage to anyone making less than six digits, or that the interest rate would be so unbearable as to force more folks into bankruptcy. This to cover their potential loss, whether it occurs or not.

[Flamingo]

"Pelosi told fellow Democrats during a closed-door meeting that the idea of letting judges rewrite mortgages to help bankrupt homeowners avoid foreclosure won't be a part of the emergency legislation. That provision, pushed by several Democrats, would be a deal-breaker for Republicans whose votes are needed to pass the measure, she said, according to lawmakers at the meeting.

Democrats and Bush administration officials also said they were willing to include House Republicans' idea of having the government insure distressed mortgages -- but only as an option, rather than a replacement for the administration's more sweeping approach."

I need to bring out some points here from a discussion last night with our friends stopping over and some folks yesterday in the office....There will be such a revolt by the average American working hard to keep his house, keeping debt under control and not filing bankruptcy that if those that file are able to redo their mortgages and lower interest/costs, those rights should be extended to them in this economy to help their struggling also. All of us have friends/family that have not filed or have been discharged and in a better place. Have you spoken with them recently if they carry a mortgage and the daily burden of living? One of our friends is so upset that he works two jobs to support his family and pay his bills, mortgage and home equity line that he cannot understand why the government would bail out people filing BK to help them keep their homes, cram their mortgages and cut them a break when he cannot get one. He mentions there will be more attempted abuse by filers if mortgages can be crammed or redone and he is probably right. Politicians are aware of this feeling out there very well and they have to be careful how it is handled and done because the average bill and mortgage paying American is tired of carrying the debt and burden of society when he/she does not get a break at all.

This makes it hard for the person who is really in trouble and needs to file. They are stuck in the middle while all this is going on and being resolved. Plus you are going to have a lot of really tee'd off recent filers who have had to let their houses go and then something comes into place to help them out shortly after the fact that does not benefit them? Oh boy, just wait for the issues to come out here...

This is all just the tip of the iceburg. There will be so many changes made to the mortgage and credit markets in the years to come there will be less of a free ride for everyone.