As many of you know, there is a bill on the table in congress, that would allow Bankruptcy courts and Judges to modify a Mortgage if they feel the terms are unfair. This bill would help out a lot of Homeowners who can no longer afford their mortgage payments on a house that has a greatly reduced value. This would also help the Lenders because more people would be able to make their payments and the Bank's would have less houses going to Sheriff's sale. This would in turn reduce their legal fees and allow them to turn a profit on the home. Because when a home goes to Sheriff's sale the bank usually only recovers their initial investment but don't profit. This would also allow the housing market to stabilize and prices to get back to normalcy.
this bill was included in the Big Bailout from October but was removed prior to it being passed.
That same Bailout bill is now paying for Bonuses being given to crooked CEOs who initially cooked the books and got themselves in to this mess.
The Mortgage Brokers Association actually set up a whole website bashing this Modification Bill as if Homeowners would not benefit from it, don't believe me, check out the link Below:
Now, the banks have the Gaul to fight this bill because of greed.
Here is their explanation as to why this is a bad idea:
"We oppose the inclusion of bankruptcy reform in this bill for several reasons. First and foremost, it is a polarizing issue that threatens to bring down a crucial measure this country needs in order to avoid a serious economic downturn. Congress must pass this bill to establish the Treasury program in order to safeguard the American economy. Congress has already debated the bankruptcy issue and the proposal was defeated. This is not the place to have this debate again. We welcome another debate on this issue on its own merits, not in the context of the current issue."
The best they can come up with is that it is a polarizing issue! Lots of things are Polarizing, it does not deem them useless. The second reason is because it was defeated once already. The reason it was defeated was because of lobbyist groups like the MBA that convinced Congress to vote it down by fattening their coffers.
I urge anyone who has read this to call their congressmen and tell them that you won't stand for such behaviour. On top off all that the MBA plans to raise closing costs and Interest rates if they don't get their way. Arrgh!!
Here is a link to the actual bill:
I understand that the MBA has different interests in mind then regular people but this bill is not the egregious that it will hurt them, once again GREED has polluted the logical mind.