modification Tag

27 Dec HAMP Mortgage Modifications and Bankruptcy

HAMP, the Home Affordable Modification Program which can modify a mortgage, is no way to avoid bankruptcy. It's a heart-breaker. It builds up false hopes andthendestroys them. That's my conclusion from reading the new Congressional Oversight Panel report. I haven't written on HAMP because I've questioned...

Read More

07 Aug TARP and HAMP Require That Foreclosure Be Suspended

A mortgage lender which received TARP funds, or which voluntarily signed up for President Obama's HAMP program, must suspend a foreclosure action while a borrower's mortgage modification application is pending. That's good news. HAMP is the modification program of the Home Affordable Plan. (HARP is the...

Read More

11 Feb Mortgage Bankers Want Your Home, Not Your Money

Congress is considering changes to the Bankruptcy Code that would allow the same judicial modification of home mortgages that is currently allowed for vacation homes, business property, and other assets. Letting families keep their homes by reducing principal and interest to market value would let tens of thousands of homeowners resume making their mortgage payments, halt many of the 46,000 foreclosures that are taking place each week, and stop the glut of foreclosed homes on the market that are continually ratcheting housing prices downward. But surprise, surprise, the Mortgage Bankers Association opposes these changes. Why? Let's look at the facts.
Read More

29 Oct Has Your Dream Home Become Your Worst Nightmare?

A recent issue of The Reader's Digest, June 2008, addressed this issue in "HomeSick". The writer, Lisa Collier Cool, told the story of several young families who had bought homes during the housing boom in the early 2000s. The profiled couples are in foreclosure due to job loss, income decrease, or payment increase. Ms. Cool looked at the viewpoints of both Democrats and Republicans on ideas of how to solve the crisis. The Democrats, says Ms. Cool, have an ambitious plan where the government would insure failing subprime loans, hoping that lenders would then allow modification at rates that the homeowners could afford. The Republicans, says Ms. Cool, view the lenders as the victims and would endorse a plan that assists the lenders. As we now know, that is exactly what happened in the "Bailout Bill" passed in October 2008.
Read More