Stop Foreclosure: Bankruptcy Legislation Helps Desperate Homeowners
Desperate homeowners in some states may soon be able to get relief from bankruptcy judges to help stop foreclosure. How?
Bankruptcy Legislation May Help Stop Foreclosure
If you are under water on your house (ie, owe more on it that it will sell for), bankruptcy judges will be able to use legislation [the Helping Families Save Their Homes in Bankruptcy Act of 2009] specifically devised to stop foreclousres to write down mortgage debit. The Miami Herald article, Miami Judge Supports Bankruptcy Legislation Helping Homeowners, explains it this way:
A key component of President Barack Obama’s plan to curb the rising tide of foreclosures is to give bankruptcy judges the power to write down mortgage debt for people in bankruptcy court. It’s known in bankruptcy as a “cram down.”
Stop foreclosure through bankruptcy? To read an Q and A with a bankrupcty judge on how the process would work if the legislation passes, read Miami Judge Supports Bankruptcy Legislation Helping Homeowners.
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