*~*This would be awesome for HOMEOWNERS *~*

[optimistic1]

The only good thing about it passing will be that there will be less foreclosures, so meanwhile the responsible person like myself, who understood that an ARM will adjust and your payment will increase and got a normal loan, will hopefully regain some value in my house.

If your gonna bailout the crooked banks, and the crooked STATED INCOME borrowers that created the whole mess, then they need to bailout the RESPONSIBLE borrowers that have lost all their equity as well.

But that would be in a perfect world, which, based on the signs of the times, we obviously do not even come close to that.

[HHM]

Here is the actual text of the bill as it relates to BK

(a) In General- Section 1322(b) of title 11, United States Code, is amended--

(1) in paragraph (10), by striking ‘and’ at the end;

(2) by redesignating paragraph (11) as paragraph (12); and

(3) by inserting after paragraph (10) the following:

‘(11) notwithstanding paragraph (2) and otherwise applicable nonbankruptcy law--

‘(A) modify an allowed secured claim for a debt incurred prior to the effective date of this paragraph secured by a nontraditional mortgage, or a subprime mortgage, and any lien subordinate to such claim, on the debtor’s principal residence, as described in subparagraph (B), if, after deduction from the debtor’s current monthly income of the expenses permitted for debtors described in section 1325(b)(3) of this title (other than amounts contractually due to creditors holding such allowed secured claims and additional payments necessary to maintain possession of that residence), the debtor has insufficient remaining income to retain possession of the residence by curing a default and maintaining payments while the case is pending, as provided under paragraph (5);

‘(B) provide for payment of such claim--

‘(i) in an amount equal to the amount of the allowed secured claim;

‘(ii) for a period that is the longer of 30 years (reduced by the period for which the loan has been outstanding) or the remaining term of such loan, beginning on the date of the order for relief under this chapter; and

‘(iii) at a rate of interest accruing after such date calculated at a fixed annual percentage rate, in an amount equal to the most recently published annual yield on conventional mortgages published by the Board of Governors of the Federal Reserve System, as of the applicable time set forth in the rules of the Board, plus a reasonable premium for risk; and

‘(C) if a claim has been modified to an amount below the original principal of the loan pursuant to subparagraph (B)(i) and the debtor’s principal residence is sold during the term of the plan, the holder of the claim shall be entitled to receive, in addition to the unpaid portion of the allowed secured claim, the net proceeds of the sale, or the amount of the holder’s allowed unsecured claim, whichever is less; and’.

First obvious CATCH...it only applies to non-traditional and subprime mortgages, second, if you sell the house in the future and the house increases in value, it appears the lender maintains a lien for the unsecured portion of their claim, also, it will only apply to loans that exist before the effective date of the law. It appears that this will add a layer to the income and expense calculation, if I am reading this correctly you only qualify for the write down if you cannot afford the current monthly payment.

So bottom line, as it is written right now, you can only modify the first mortgage if
1. the mortgage is sub-prime
2. You cannot afford the current monthly payment of your mortgage along with your other necessary expenses
3. The mortgage company maintains some sort of subordinate lien for the unsecured portion of their claim if you sell the house during your chapter 13 plan.

As it stands right now, this bill is garbage, sorry to say. Instead of doing all this stupid crap, they should just strike the wording in Sec 1322(b)(2) that states "other than a claim secured only by a security interest in real property that is the debtor's principal residence,"

[SiftedLikeWheat]

The only good thing about it passing will be that there will be less foreclosures, so meanwhile the responsible person like myself, who understood that an ARM will adjust and your payment will increase and got a normal loan, will hopefully regain some value in my house.

If your gonna bailout the crooked banks, and the crooked STATED INCOME borrowers that created the whole mess, then they need to bailout the RESPONSIBLE borrowers that have lost all their equity as well.

But that would be in a perfect world, which, based on the signs of the times, we obviously do not even come close to that.

If I were in charge, I would reajust ALL mortgage loans to the current value of the home--maybe then the banks and the government would stop all the bad policy and bad loans that falsely inflated home prices in the first place.

By the way--please remember that A LOT of foreclosures occured because people had to move or lost a job! Everyone did not have an ARM. I bought an over-inflated home in CA (they were ALL overinflated) with 20%+ down and then got a second to make needed improvements. Then I got cancer, my husband left his high-pressure job due to the stress, etc. We moved to PA to be near his family AND OUR HOUSE NEVER SOLD. He knows two other people at his company who moved for jobs, their homes did not sell, and like us they lost EVERYTHING.
THEIR ARE MANY PEOPLE CAUGHT UP IN THIS WRETCHED ECONOMY, caused by government incompetence and corporate greed. Please lay off the little guy once and a while!

[justbroke]

As it stands right now, this bill is garbage, sorry to say. Instead of doing all this stupid crap, they should just strike the wording in Sec 1322(b)(2) that states "other than a claim secured only by a security interest in real property that is the debtor's principal residence,"

They basically made no changes to the way it was the last time they tried to get it passed.

Even then, the actual number of people it would help is way less than 10% of the people in jeopardy of actually losing their homes.

[soapbox]

Yet, they get we Americans all excited that they -- Congress -- is actually doing something about the mess they -- Congress -- made and/or allowed to happen in the first place.

I'm tired of Congress and the current and incoming administration playing these games, making the people think that what they are going to do is going to save homes. Look no further than TARP; that was supposed to save homes too.

Regardless of what they say, this is just not going to work as it is.

[/soapbox]

Personally, I don't need this tool for my situation. I may be a bit apathetic about this, but you have to remember this. The only way to use this "program" is to actually file for Bankruptcy. That cuts out 90% of people right off the bat.

If the government wants to really stop foreclosures... setup a program to cramdown loans outside Bankruptcy. And, have the government either back the difference (to encourage Banks to continue loaning and have the right portfolio balance in order to lend) or buy the difference.

[justbroke]

The only good thing about it passing will be that there will be less foreclosures, so meanwhile the responsible person like myself, who understood that an ARM will adjust and your payment will increase and got a normal loan, will hopefully regain some value in my house.

There won't be fewer foreclosures. This is under the Bankruptcy code. This is only going to help those already contemplating to file Bankruptcy.

If your gonna bailout the crooked banks, and the crooked STATED INCOME borrowers that created the whole mess, then they need to bailout the RESPONSIBLE borrowers that have lost all their equity as well.

The Banks are crooked because they are opportunists and capitalist... just like most of us are.

You cannot have a bustling economy (as it was from 2000 to 2006) without lots of injection of cash into the system. Everyone was fat, dumb and happy when Banks were handing out $10K credit lines like Candy. I know, because I was eating that candy.

To now say Banks are scum, doesn't do any justice. The Congress and past, present and future administrations, will always look to Banks to distribute cash and to extend credit. Even the current incoming administration understands that the economy doesn't work without Banks lending money!

Everyone is mad about TARP but don't understand that it actually worked. Everyone is mad because they thought TARP was going to stop foreclosures. I, personally, never thought it could or would do that. Neither will the "modification" garbage that they'll add to the Bankruptcy Code (which will be so limiting, that it will be laughable).

However, most Americans will eat it up and think the Congress did a wonderful thing.

I need to relax.

[NowImDownInIt]

The only good thing about it passing will be that there will be less foreclosures, so meanwhile the responsible person like myself, who understood that an ARM will adjust and your payment will increase and got a normal loan, will hopefully regain some value in my house.

If your gonna bailout the crooked banks, and the crooked STATED INCOME borrowers that created the whole mess, then they need to bailout the RESPONSIBLE borrowers that have lost all their equity as well.

But that would be in a perfect world, which, based on the signs of the times, we obviously do not even come close to that.

Okay, damn, you are getting a little personal there. Not all people in sub-prime crappy mortgages with crappy rates are crooks. Some of them are just people trying to live the beaten until almost dead American dream...

I was tricked into a mortgage, using my ACTUAL income (verified several times) by a mortgage broker trying to earn a buck. I was 19 years old. I ended up with a 10% interest rate on a 30 yr loan, making a $912 a month payment on an 877 sq ft house. Had I not been able to sell it in time, I would have foreclosed. Sometimes things just aren't what you think.

Shame on you for being upset that some people are being helped and you aren't... at least this time it's not big business benefiting in the end.

[optimistic1]

Sorry, Im just trying to be optimistic about the whole thing, hence the name.

[laz]

simon2020,

please stop with large colorful posts, stick to regular font size and black font is easiest to read.

Also, please refrain from using a single smiley as a reply. Posts need to contain actual content.

Dear mods, please keep an eye on this type of behavior.

[laz]

simon2020,

please stop with large colorful posts, stick to regular font size and black font is easiest to read.

Also, please refrain from using a single smiley as a reply. Posts need to contain actual content.

Dear mods, please keep an eye on this type of behavior.

[simon2020]

lazar - Chill OUT





Lazar, Someone already brought that up so chill out and relax. Are you the Grammar/Spelling Police?

Sheesh, forums are to help people, not condemn them to hell.

It's not like we're at some elementary school playground and secondly, what I posted was substance not eye candy junk.

Oh and by the way, do I need to ask you for a "hall pass" before proceeding to the principal's office?!

[HHM]

Lazar, Someone already brought that up so chill out and relax. Are you the Grammar/Spelling Police?

Sheesh, forums are to help people, not condemn them to hell.

It's not like we're at some elementary school playground and secondly, what I posted was substance not eye candy junk.

Oh and by the way, do I need to ask you for a "hall pass" before proceeding to the principal's office?!

LOL, not exatly the best way to respond to the forum owner

[Never_Again]

Lazar, Someone already brought that up so chill out and relax. Are you the Grammar/Spelling Police?

Sheesh, forums are to help people, not condemn them to hell.

It's not like we're at some elementary school playground and secondly, what I posted was substance not eye candy junk.

Oh and by the way, do I need to ask you for a "hall pass" before proceeding to the principal's office?!

Let me guess... you have "Freedom of Speech?" LOL...

I can figure from the "The government has to do something for me, I am so screwed" mentality. Usually they are the ones that cry about their "free speech!"

The forum owner has freedom of speech, and they allow you to participate in it on their forum.

[CatsInTrouble]

SIMON

screw that. Thanks for pointing out the important parts of the boring legalese with your font and what not. I was able to see immediately what got you (or other BKers) excited and what points were most applicable here.

If a forum owner wants to take hard lines and ban people and etc, for silly things, fine, it's a big internet with a lot of clickable adsense on it.

[hereforinfo]

This cram down is not going to apply to those of you who have lost your job or are unemployed. Why? Because the bill states that you have to be able to afford the new payment. Obviously someone who is unemployed would not be in a ch 13, or not reasonably afford the mortgage payment. This mod will help those people who took the loans above their means. What a load of crap, especially considering that once the ch 13 term is up, they can sell the house and walk away with any profit. Sub-prime loans? Those are the people who had bad credit and a history of being irresponsible with finances. Yeah, let's bail them out, reward them and punish those who were responsible.

[Scooter10]

Here is the actual text of the bill as it relates to BK


First obvious CATCH...it only applies to non-traditional and subprime mortgages, second, if you sell the house in the future and the house increases in value, it appears the lender maintains a lien for the unsecured portion of their claim, also, it will only apply to loans that exist before the effective date of the law. It appears that this will add a layer to the income and expense calculation, if I am reading this correctly you only qualify for the write down if you cannot afford the current monthly payment.

So bottom line, as it is written right now, you can only modify the first mortgage if
1. the mortgage is sub-prime
2. You cannot afford the current monthly payment of your mortgage along with your other necessary expenses
3. The mortgage company maintains some sort of subordinate lien for the unsecured portion of their claim if you sell the house during your chapter 13 plan.

As it stands right now, this bill is garbage, sorry to say. Instead of doing all this stupid crap, they should just strike the wording in Sec 1322(b)(2) that states "other than a claim secured only by a security interest in real property that is the debtor's principal residence,"

sorry, I am dense.

So under this law, if passed, the mortgage woulde sub-prime just to qualify??