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.
About Jill Michaux
