Mesquite NV Foreclosures - House Democrats unveiled a wide-ranging bill on Monday evening to prop up the housing market and most contentiously, empower bankruptcy judges to modify mortgages.
The bill includes a "cram down" provision that allows judges to write down the principal and interest payments for a homeower's primary residence, something strongly opposed by the financial services industry and mortgage lenders. more about the cramdown bill from thehill.com
If the value of your home has decreased below your mortgage balance, and you are still current on your payments, you might qualify to refinance your Fannie Mae or Freddie Mac loan.
The whiteboard video below from Marketplace.com explains what a Cramdown is:
Cramdowns from Marketplace on Vimeo.
Hi Virginia, Thanks for posting this interesting explanation. Also - Happy Birthday to your grandson!
Virginia, I don't vote Democratic but I do agree with the BK judge's ability to force the lender to modify the loan. As I've said in other comments, the lender should have already done it voluntarily before the borrower got so frustrated that they had to file for BK.
Thanks for posting to http://activerain.com/groups/virtualoffice
Gretchen - I enjoyed his explanation of cramdowns - question is what happens to the remaining 250K.
Regina - Cramdown may force lenders to do what they already should have done!