Why Citigroup "Backs" Home Loan Bankruptcy Plan

[deee3]

http://www.cnbc.com/id/28562632/
Posted By: Diana Olick | CNBC Real Estate Reporter
cnbc.com

[chloe0724]

As has been said many times, it is highly unlikely that this will pass. Too many people that are already in a 13 or people that are paying their mortgage even if they are upside down, would have a fit.

[SiftedLikeWheat]

It is too late for me--wouldn't have exactly fit my circumstances anyway--but I would be very happy to see it pass. There is NO REASON that BK judges should not have the power to restructure the loans in BK other than there is a humungous banking/lender lobby group. I say it is about time. The banks got their bailout, while our "bailout" was BK. Their bailout should have been BK too--so that it would be handled by the judge and not the corrupt politicians taking campaign money!

I would dearly love to see this pass and at least help someone!!! And better, not give the banks/lenders EVERYTHING they want.

When did this new business model begin, where businesses take no risk--where if they lose money, the cry to the government to bail them out? We have BK, they should get BK, that's how it's supposed to work. I tell you when it happened and where it came from--corrupt politicians taking "special interest" (lobby) money!

My two cents, thanks! I do hope it passes!

[keepmine]

I think it will pass. People can complain all they like but, it's imperative that we put a bottom in the housing market. Foreclosures help no one. Banks are going to take a loss no matter if cramdowns are allowed or not. This measure will keep people in homes on afforable terms {hopefully} as opposed to them sitting vacant for months at a time before, somebody else buys it at a price well below the loan balance.

[HHM]

See my post in this thread on this subject

http://www.bkforum.com/showthread.php?t=32907

The current wording of the bill will hardly help anyone.

[newbeginning]

Every bank, mortgage company that is getting any portion of the bail-out that tax-payers are paying for should follow Citi's lead.

Than again, if judges will be given the power to adjust primary or sole mortgages (why this wasn't an option in the first place is beyond me...) by statute in the near or soon future, than Citi is not doing for selfless reasons as it would indicate.

[chloe0724]

Would there be a provision for those of us already in a 13 that are way upside down?

[Flamingo]

Would there be a provision for those of us already in a 13 that are way upside down?

No. There is another thread running in conjunction with this one where HHM has an entire posting as to what is involved. Only those with subprime mortgages would qualify and it appears that there is a provision for the lender to retain a secured interest in the amount of the mortgage that is not crammed (sorta what is done in some modifications now).

[SubPrimeME]

This all seems to be coming down the pipe about 12-18 months too late. Why this wasn't headed up a long time ago.... A lot of us would hve been saved.

[optimistic1]

Blame everyone who voted for Good Ol George Bush.

[Never_Again]

Oh yes, blame everyone who voted for GW Bush...!

After all, nobody's financial problems could have anything to do with being, even partially, their own fault!

[banca rotta]

Blame everyone who voted for Good Ol George Bush.

Trust me. You all and I would be here if Gore or Kerry were in the White House. The sooner you realize this the better you will sleep.

[cyn5]

I also think this will probably pass. I also wonder about the future of changing the bk laws pre-2005. Sen Durbin who is the one who wrote this bill for the mortgage cramdowns also wrote a similar bill relating to private student loans and how they should be included in bk since they really do not fit the definition of an educational loan as defined by the gov. Basically really high interest loans that are sent directly to the student (school doesn't know about them or sign off on them). They are predatory lenders if you ask me. So, I am hoping that if this mortgage bill passes, it will hopefully set the stage for private loans! But of course I am going to file in the next 3 months or so and there would probably be no action on this for a while.

[CatsInTrouble]

Trust me. You all and I would be here if Gore or Kerry were in the White House. The sooner you realize this the better you will sleep.

Nah, I think our country needed the kind of fresh,clean start and hope that Obama brought. We wouldn't have got him had Gore or Kerry won. Whether the hope of Obama is "real" or "earned" or even "smart" --or not, it does serve a purpose.

[CatsInTrouble]

I also think this will probably pass. I also wonder about the future of changing the bk laws pre-2005. Sen Durbin who is the one who wrote this bill for the mortgage cramdowns also wrote a similar bill relating to private student loans and how they should be included in bk since they really do not fit the definition of an educational loan as defined by the gov. Basically really high interest loans that are sent directly to the student (school doesn't know about them or sign off on them). They are predatory lenders if you ask me. So, I am hoping that if this mortgage bill passes, it will hopefully set the stage for private loans! But of course I am going to file in the next 3 months or so and there would probably be no action on this for a while.

man I got screwed with some of those kinds of loans and I was a non traditional adult student. I feel for impressionable young kids that get them.