From Realtor Magazine Online, Daily Real Estate News March 20, 2009
The plan to allow judges to write down mortgage debt for people in bankruptcy court, a practice known as “cramdowns,” is stalled in the U.S. Senate.
The measure has passed the House already, but will need 60 votes to gain Senate approval. Senate Democrats have been unable to get a handful of moderates from both parties to agree to vote their way. Some lawmakers say the rule would penalize borrowers who have kept current with their mortgage payments.
President Obama included the cramdown idea as part of his broader housing plan.
Banks and other financial institution oppose court-ordered mortgage workouts because they say they it increases the risk for lenders and ultimately will raise mortgage rates.
Source: The Wall Street Journal, Elizabeth Williamson (03/20/2009)
Subscribe to:
Post Comments (Atom)
.jpg)
No comments:
Post a Comment