Bankruptcy Cram Down Could Reduce Foreclosures 20 Percent
Proposed legislation that would allow bankruptcy judges to modify the terms of mortgages on primary residences could reduce foreclosures by 20 percent, according to a report from Credit Suisse.
The investment bank’s analysts believe that if such legislation were to become law, it would prompt banks and lenders to step up loan modification efforts.
“We expect the new bankruptcy reform will increase Read more
Mortgage Cram Down Looks Certain Now
A new law that would allow bankruptcy judges to modify the terms of mortgages on primary residences seems a certainty now, according to a Reuters report.
Democrats in both the House and Senate are reportedly preparing a plan to introduce such legislation that should get president-elect Barack Obama’s blessing once it reaches his desk.
Similar bills were strongly opposed by industry groups like the Mortgage Read more