http://www.bankruptcylawnetwork.com/2007/07/13/why-can%e2%80%99t-i-%e2%80%9ccram-down%e2%80%9d-my-mortgage-in-a-chapter-13/ Real Lawyers, Real Solutions Tue, 10 Nov 2009 16:34:06 -0700 http://wordpress.org/?v=2.8.6 hourly 1 http://www.bankruptcylawnetwork.com/2007/07/13/why-can%e2%80%99t-i-%e2%80%9ccram-down%e2%80%9d-my-mortgage-in-a-chapter-13/comment-page-1/#comment-9540 The NY Times Supports Mortgage Cramdown at Bankruptcy Law Network - Real Lawyers, Real Solutions Sat, 14 Jul 2007 15:36:15 +0000 http://www.bankruptcylawnetwork.com/2007/07/13/why-can%e2%80%99t-i-%e2%80%9ccram-down%e2%80%9d-my-mortgage-in-a-chapter-13/#comment-9540 [...] As Peter Orville of New York points out in his blog, Why Can’t I Cram Down My Mortgage In A Chapter 13, bankruptcy law does not permit a debtor to modify the terms of a mortgage loan secured only by that debtor’s primary residence. Many scholars question the need for special protection of mortgage debt in today’s financial climate, where most mortgages are bought and sold as investments through slices of securitized trusts. Defaults in the sub prime lending market are starting to expose lending practices that have led many borrowers into unaffordable adjustable rate mortgages. In a July 14th 2007 editorial, No Protection For Homeowners, the NY Times questions the need for bankruptcy protection of mortgage holders, who in most cases purchased an existing mortgage as an investment. The Times urges Congress to reform bankruptcy law to permit a debtor to pay the fair market value of the house, rather than the total loan balance. If bankruptcy is designed to restructure debt and give a struggling debtor a fair chance, current law saddles the unsophisticated home buyer with more debt than the house is worth. [...] [...] As Peter Orville of New York points out in his blog, Why Can’t I Cram Down My Mortgage In A Chapter 13, bankruptcy law does not permit a debtor to modify the terms of a mortgage loan secured only by that debtor’s primary residence. Many scholars question the need for special protection of mortgage debt in today’s financial climate, where most mortgages are bought and sold as investments through slices of securitized trusts. Defaults in the sub prime lending market are starting to expose lending practices that have led many borrowers into unaffordable adjustable rate mortgages. In a July 14th 2007 editorial, No Protection For Homeowners, the NY Times questions the need for bankruptcy protection of mortgage holders, who in most cases purchased an existing mortgage as an investment. The Times urges Congress to reform bankruptcy law to permit a debtor to pay the fair market value of the house, rather than the total loan balance. If bankruptcy is designed to restructure debt and give a struggling debtor a fair chance, current law saddles the unsophisticated home buyer with more debt than the house is worth. [...]

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