Major Fed Failure: Legislation and/or Actions To Keep More People In their Homes

Posted on July 27, 2011

This assessment of the foreclosure crisis by a Georgia attorney should make every taxpayer and citizen of conscience in America march on Washington:

Its too bad that the Mortgage Modification bill never passed.  Under this bill, bankruptcy judges would have been given the power to modify mortgages and lower future mortgage payments based the real value of the house.  Passage of this bill would have prevented the foreclosure crisis because debtors would have been able to stay in their homes with lower mortgage payments.  The best part would have been that this program would not have cost the American taxpayer any money.

Instead, “685,574 homeowners are being assisted by foreclosure prevention programs funded with $1.2 billion in TARP Money”  (Consumer Bankruptcy News, page 4).  The bad news is that the vast majority of people who applied for federal help never received it.

The good news is that Chapter 13 can stop foreclosures.  Past due mortgage payments can be put into a plan and spread out over five years.

However, it is important to note that Chapter 13 does not lower your future mortgage payments.  As a result, if you are in a situation where your mortgage payments is too high, Chapter 13 may not be the answer. [Kelly Can Help]

Posted in: Uncategorized