3/5/2009
Since lenders have no clue what they are doing and are floating by day to day with their heads firmly stuck up their ass, U.S. Judges just might come to the rescue.
Today, the U.S. House approved a broader/revised bill that would allow U.S. Bankruptcy judges to set a new prinicipal loan amount on loans issued to primary residences.
Before that can happen, homeowners would have to seek a loan modification from their lender and wait 30 days from the loan modification request in order to file for a Cram Down. Homeowners must also agree to share any profits if they sell the house within five years.
The legislation now would require the lender to get 90% of profits if the house is sold in the first year after the mortgage is revised in bankruptcy, 70% in the second year, 50% in the third year, 30% in the fourth year and 10% in the fifth year.
The revision was approved with a vote 234 to 191 and now heads to the Senate for an approval ...... God Willing ! Wake up lenders, you've made billions off the backs of the very same people you are now screwing.
Let's screw the homeowners even more by leaving them no choice but to file for Bankrutpcy in an effort to save their homes and gain lender attention. Sure, just leave it to the court system to figure out since the lenders don't know how to clean up the mess they created.
