Treasury Secretary Pushes for More Loan Modifications
By Nicholas Ortiz, Boston Bankruptcy Attorney on Oct 16, 2007 in General Bankruptcy Information
The Associated Press reported today that Treasury Secretary Henry Paulson urged mortgage lenders to help homeowners refinance into affordable loans before adjustable rate mortgages moved to higher levels. Given Secretary Paulson’s credibility with the financial markets, his urgings may indeed have an impact and pressure lenders to be more flexible in dealing with loan modification requests from consumers. Secretary Paulson made various references to government involvement in mitigating the pain of the foreclosure crisis. However, meaningful government involvement to deal with the present crisis–such as bailout–has yet to materialize and is, in my opinion, extremely unlikely to ever happen. The bottom line is that government is now using its bully pulpit to urge lenders to consider options besides foreclosure. If you are facing foreclosure, it makes sense to explore these options with all due speed while at the same time considering bankruptcy.
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