Mortgage Relief + Congress = Bankruptcy Court
Looks like the ever expanding home mortgage crisis will be headed to courtrooms after all.
Democrats in the House have apparently come to terms on legislation that would give bankruptcy judges authority to rewrite mortgages provided borrowers could prove that they had tried without success to secure better terms with their lenders.
It is this condition that apparently allowed some otherwise reluctant congresspeople to sign on the dotted line.
The full House may vote Thursday.
What remains unclear is whether this legislation would apply even to those whose mortgages were long ago sold off to God knows how many investors?
The A.P. quotes House Majority Leader Steny Hoyer as saying, “The concern is that we want to ensure that those people who get relief have tried other avenues.”
But already some critics are crying foul. They argue that lenders are difficult to deal with as is…so how receptive are they likely to be to pleas for lower rates?
While this is playing out…and this is not a done deal by any measure, in San Diego, something strange is going on!
Reportedly, more and more banks have simply stopped foreclosure proceedings….they are down considerably from only months ago.
Is the housing market recovering under the San Diego sun?
The slow down in bank foreclosures appears to be the result of lending institutions taking a deep breath while waiting to see what goodies might come their way courtesy of the Obama administration.
Photo Credit: Daniel Leininger