Congress Considers Judicial Mortgage Modification in Chapter 13 Bankruptcy

The Helping Families Save Their Homes in Bankruptcy Act of 2009 is pending in Congress.  If passed, chapter 13 debtors will be able to  rewrite their delinquent mortgage loans by lowering the loan balance to the value of the home, reducing interest rates, eliminating the variable rate and fixing the interest rate, and stretching out the mortgage over 40 years.  The goal is to lower the payments enough to make them affordable for the borrower to keep the home and avoid foreclosure of the mortgage.

Mortgage bankers want your home not your money. They oppose the law change and are lobbying against the proposed legislation.

Related posts:

1. Call Kansas Senators to Support Judicial Mortgage Modification in Bankruptcy
2. NPR Airs Story on Judicial Mortgage Modification in Chapter 13 Bankruptcy
3. Congress Considers Bankruptcy Change to Help Homeowners Stop Foreclosure
4. Watch Out for Mortgage Modification Scams
5. Judicial Modification of Mortgages in Bankruptcy to House Floor Wednesday