Did you know that bankruptcy currently gives stronger protection to those struggling with mortgages on second and vacation homes than it does to those who are at risk of losing their primary residence?
Legislation under review in Congress may change that.
Currently the bankruptcy court cannot modify the terms of a mortgage on a primary residence. The new legislation would allow the bankruptcy court to change the terms including the interest rate.
President Bush has come out as against modifying the Bankruptcy laws. It may have a tough time in Congress too.
The real opposition comes from second lien holders who fear that the legislation would wipe out their interest.
The Mortgage Bankers Association says that in the short term there would actually be more foreclosures as lenders try to file ahead of the changes in legislation rather than waiting and working with the debtor.
In a statement this weekend, Senator Barack Obama, who is running for President, said he supports modifying bankruptcy legislation to protect homeowners.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment