sajincc

Mortgage Cramdowns: A Disaster in the Making

Tom: mortgage cramdown has been a part of the bankruptcy code for 100 years. In all context except consumer home loans it has a protection called the 1111(B) election that prevents cramdown in bad times and when the market recovers, a windfall to the debtor at the expense of the creditor. Credit Card lobby and financial interests controlled the bankruptcy reform act making financial "involuntary servitude" a new reality beginning in 1995. Why not learn a little more about the bankruptcy code, and await the proposed legislation to see how it is proposed. As it stands today, consumers have no possible bankruptcy relief from home loans made by the "bubble creating" financial wizards and mortgage brokers. This is not a problem started by bad home owners and they should not suffer the brunt of the fix.