I'm Gail Simmons with my husband Hank and our children.
Q: How can a bankruptcy cramdown help me get a loan modification?
ShareThisQuestion: How can a bankruptcy cramdown help me get a loan modification?
Answer: A bankruptcy cramdown is a process that will allow homeowners the option of lowering their principal mortgage balance through the bankruptcy courts – the so-called bankruptcy cramdown.
Loan modification expert, Mike Rockwood, has said these cramdowns will be the next trend in dealing with the loan modification and foreclosure crisis.
And right on target, Congress is now discussing this remedy. Note a recent article on this topic:
Quote: Following the Obama administration’s announcement that it was stepping up pressure on servicers participating in the Home Affordable Modification Program (HAMP), Center for Responsible Lending President Michael Calhoun issued a statement saying the program adjustments “do little but highlight the continued failure of lenders’ voluntary efforts to stop the foreclosure crisis.”
“Lenders have insisted for almost three years now that they will voluntarily address the foreclosure crisis, but the record shows they’ve made too few long-term modifications,” Calhoun said. “The HAMP program the administration introduced last spring was an improvement, but it was originally designed as just one part of the solution, along with allowing homeowners to seek loan modifications through the existing court system.”
Calhoun called on Congress to take additional steps, including allowing homeowners the option of lowering their principal mortgage balance through bankruptcy courts – the so-called bankruptcy cramdown. Lawmakers, including House Financial Services Committee Chair Barney Frank, D-Mass., have called for passage of cramdown legislation. Earlier this year, a cramdown bill introduced by Sen. Richard Durbin, D-Ill., was decisively defeated in the Senate.
Calhoun also recommended the creation of a “low cost, short term” loan program for unemployed homeowners who have no other option for keeping current on their mortgage. Moreover, Calhoun said the Treasury Department should be required to make all loan servicing HAMP data available to the public so that taxpayers can better evaluate the program and the efforts of individual companies.
Source: http://www.mortgageorb.com/e107_plugins/content/content.php?content.4820 // End Quote
In the meantime, you can take action now and force the bank/servicer to work with you with right tools…
Before completing and sending in a loan modification package, you may want to obtain some coaching to combat the stall tactics banks/servicers are using to cut to the front of the line of other applications and get approved faster
Click here to get proven help with your home loan modification
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Stop Foreclosure Get more help on fighting to stop a foreclosure with one of 7 options. For example, if a loan modification is not an option learn about a little-known government program that will stop a foreclosure in less than a day without an expensive attorney. Also get the latest foreclosure news around the country, read Q&As and other resources. Legally Restore Your Credit |
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