The Chapter 13 Trustee for the Middle District of Tennessee (Nashville) is being sued by Bank of America for forcing the mortgage company to produce the underlying note to mortgages, or face being treated as an unsecured creditor in the bankruptcy pot or plan. Nashville Business Journal has the story here. This case will be interesting [...]
Mortgage Modification
The Frustrating Saga of Loan Modifications
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By: Aaron Huff Over the last few years, a new buzz term has enterred the vocabulary of our troubled economy. Loan Modification. The mortgage creditors make it sound so easy. The President and Congress make it a talking point as if it were a “fix” for our housing and mortgage crisis. But is it anything [...]
E.D.N.Y. Approves Debtor’s Chapter 20 Lien Strip
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Lien Stripping in Chapter 13 Bankruptcy For our readers playing along at home, the basic rule with mortgage modification in bankruptcy is as follows: first mortgages on a debtors primary residence cannot be modified by filing for bankruptcy, however, second, third and other junior liens can be modified or “stripped” by filing for Chapter 13 [...]
Proposal Would Allow Chapter 13 Debtors to Pay Zero Percent Interest on Their Underwater Mortgage
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In cases where a homeowner is drastically underwater, the Bankruptcy Code gives chapter 13 debtors the ability to forcibly modify a second mortgage and thereby reduce their housing costs. As the real estate crisis continues to linger, many consumer advocates have been vocal in supporting proposed legislation that would extend bankruptcy’s mortgage modification power to [...]
Seeking Mortgage Modification? The Federal HAMP Program Explained
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HAMP Explained In response to the nationwide real estate crisis, the Obama Administration unveiled the Homes Affordable Modification Program (HAMP) in 2009 as part of the more comprehensive Making Home Affordable (MHA) Program. HAMP was initially funded with $50 billion in Wall Street bailout money and $25 billion from taxpayer-owned Fannie Mae and Freddie Mac. [...]
Three Plans For Fixing the Mortgage Mess
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While the finger pointing continues little is being done by the President and Congress to stem the tide of rising foreclosures. The Brookings Institute examines three alternative plans on how the government might actually fix the mortgage mess. The first solution proposed by Eric Posner of the University of Chicago Law School and Luigi Zingales of the Booth School [...]
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