Sunday, December 13, 2009

Proposal to allow modification of mortgages by bankruptcy judges fails again

On 12/11/09, the judicial mortgage modification amendment in the House of Representatives failed on a 188-241 vote. Similar legislation had passed the House earlier this year on a 224-191 vote. On 12/11/09, 50 Democrats who had voted in favor of H.R. 1106 switched their position and voted against the judicial mortgage modification amendment. That is baffling particularly given all the evidence that the voluntary program is not working ...and the escalating foreclosure crisis.

It is clear that lenders and servicing companies are NOT modifying loans as they portray they do in the public eye. Something else needs to happen to help homeowners facing foreclosure.

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