Tampa Bankruptcy Attorney’s Update to the Bankruptcy Mortgage Reduction or Bankruptcy Mortgage Modification
Amendments:
Senate Rejects Mortgage Cramdown Provision
The Senate defeated by 51 to 45 votes an amendment to the Helping Families Save Their Homes Act that would have granted bankruptcy judges broad
authority to modify the mortgage terms for at-risk homeowners.
Assistant Senate Majority Leader Dick Durbin, D-Ill., chief sponsor of the ‘cramdown’ provision, said he was disappointed with the vote but would continue to
bring the issue to the floor “until the Senate decides to put the interests of homeowners above the interests of bankers.” Durbin noted that the number of
homeowners at risk of losing their homes now stands at over eight million, compared to nearly two million only two years ago.
“We’ve given the bankers who got us into this crisis every opportunity to responsibly address this crisis and they have failed,” Durbin said.
The White House said that notwithstanding the Senate vote on the Durbin amendment it looks forward to working with Congress to craft “appropriately tailored
legislation to provide a mechanism for homeowners who are out of other options to file for bankruptcy and implement a responsible plan to pay the debts that
they are able to pay.”
Meanwhile, Senate Minority Leader Mitch McConnell, R-Ky., said the provision would have lead to higher interest rates and even greater uncertainty in the
housing and credit markets. “It’s clear that we cannot fix the housing problem by implementing bad policies,” he said.
The American Bankers Association agreed, noting that Congress and the administration have taken several strong steps to help troubled borrowers and get
the economy back on track. “Giving bankruptcy judges broad cramdown authority would work against those efforts and effectively undermine the goal of
stabilizing the housing market,” the association said.
Analysis: Your Tampa Bankruptcy Lawyer notes that this means that for the time a Bankruptcy cannot be used to
reduce the principal amount due on a first mortgage, but since the House has passed the Bankruptcy Reform Bill,
it is possible that a Bankruptcy Judge may have the authority to cramdown or modify a mortgage in the near
future.
Amendments:
Senate Rejects Mortgage Cramdown Provision
The Senate defeated by 51 to 45 votes an amendment to the Helping Families Save Their Homes Act that would have granted bankruptcy judges broad
authority to modify the mortgage terms for at-risk homeowners.
Assistant Senate Majority Leader Dick Durbin, D-Ill., chief sponsor of the ‘cramdown’ provision, said he was disappointed with the vote but would continue to
bring the issue to the floor “until the Senate decides to put the interests of homeowners above the interests of bankers.” Durbin noted that the number of
homeowners at risk of losing their homes now stands at over eight million, compared to nearly two million only two years ago.
“We’ve given the bankers who got us into this crisis every opportunity to responsibly address this crisis and they have failed,” Durbin said.
The White House said that notwithstanding the Senate vote on the Durbin amendment it looks forward to working with Congress to craft “appropriately tailored
legislation to provide a mechanism for homeowners who are out of other options to file for bankruptcy and implement a responsible plan to pay the debts that
they are able to pay.”
Meanwhile, Senate Minority Leader Mitch McConnell, R-Ky., said the provision would have lead to higher interest rates and even greater uncertainty in the
housing and credit markets. “It’s clear that we cannot fix the housing problem by implementing bad policies,” he said.
The American Bankers Association agreed, noting that Congress and the administration have taken several strong steps to help troubled borrowers and get
the economy back on track. “Giving bankruptcy judges broad cramdown authority would work against those efforts and effectively undermine the goal of
stabilizing the housing market,” the association said.
Analysis: Your Tampa Bankruptcy Lawyer notes that this means that for the time a Bankruptcy cannot be used to
reduce the principal amount due on a first mortgage, but since the House has passed the Bankruptcy Reform Bill,
it is possible that a Bankruptcy Judge may have the authority to cramdown or modify a mortgage in the near
future.
TAMPA LITIGATION AND DISPUTE RESOLUTION
At the Galewski Law Group we have diligently represented clients interests in matters of all sizes. From
simple recovery matters to derivative suites and D&O matters, we have successfully represented our
clients’ interests. We understand the litigation process and we understand your perception and fears of
this process. We specialize in personal client service to assure that you are informed of all stages of
the litigation. Our attention is to your personal as well as financial needs. Our focus is your comfort,
peace of mind and protecting your legal rights.
Significant Representations:
* Successfully represented individual against a real estate investor that attempted to file a fraudulent
deed to convert the individual's real property.
* Successfully represented secured lender that against debtor to recover multi-million dollar
fraudulent transfers.
* Successfully represented minor hurt in accident due to negligence of third party contractor.
www.Galewski.com
www.GalewskiTitle.com
At the Galewski Law Group we have diligently represented clients interests in matters of all sizes. From
simple recovery matters to derivative suites and D&O matters, we have successfully represented our
clients’ interests. We understand the litigation process and we understand your perception and fears of
this process. We specialize in personal client service to assure that you are informed of all stages of
the litigation. Our attention is to your personal as well as financial needs. Our focus is your comfort,
peace of mind and protecting your legal rights.
Significant Representations:
* Successfully represented individual against a real estate investor that attempted to file a fraudulent
deed to convert the individual's real property.
* Successfully represented secured lender that against debtor to recover multi-million dollar
fraudulent transfers.
* Successfully represented minor hurt in accident due to negligence of third party contractor.
www.Galewski.com
www.GalewskiTitle.com
Tampa's Best Accident Lawyers: 1112 E. Kennedy Blvd. * Tampa, FL 33602 * T 813.222.8210 * F 813.222.8211
www.Galewski.com
www.GalewskiTitle.com
www.Galewski.com
www.GalewskiTitle.com
Tampa Bankruptcy Lawyer 1112 E. Kennedy Blvd, Tampa Fl 33602, Galewski Law Group, P.A.
| Home Practice Areas Tampa Lawyers Contact Disclaimer Links Tampa Bankruptcy Forum Tampa Divorce Forum Privacy Policy |