Short Sale, Foreclosure and Strategic Default


Thursday, January 8, 2009

Mortgage Cramdowns, Bankrutpcy bill to give homeowners leverage against Lenders

Wow would this be heaven for San Diego Real Estate owners, or at least homeowners. 
You could cram payments down the first and perhaps sold out second lien holders

There might be some down side to the measures... but I do not want to get in the way of this. 

Plan to Cut Foreclosure Rate Clears Key Hurdle -
WASHINGTON -- A Senate bill aimed at giving strapped homeowners more leverage in renegotiating their mortgages cleared a hurdle Thursday when Citigroup Inc. dropped its opposition.

The legislation, which is being advanced by top Senate Democrats, would let judges set new repayment terms for mortgage holders in bankruptcy court. Lawmakers say the measure is aimed at jump-starting broader efforts to renegotiate millions of underwater mortgages now weighing down the housing market.

The proposal from Sen. Dick Durbin, an Illinois Democrat, to allow so-called mortgage "cramdowns," would apply only to homeowners who have filed for Chapter 13 bankruptcy protection. It is the first of several pieces of legislation Democrats intend to push this year to give homeowners more leverage in bargaining with banks and mortgage-servicing companies.

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