If you can still redo your mortgage in bankruptcy over 30 yrs...

[MrPerson]

We win. That change trumps all others.

Currently you have to pay your monthly payment plus pay the arrears over 60 months.

That still hasn't changed after all the changes.

[Nederland]

1. Can you clarify a bit?

I'm not sure what you are talking about...

[MrPerson]

2. The cramdown bill apparently will still be usable

even with the watered down provisions.

They're going to allow a debtor to redo their mortgage over at least 30 years and wipe out all arrears in the process.

In other words - yay.

[imdjh]

3. You have to be in the hole first?

[MrPerson]

4. Most people are.

[dysfunctional press]

7. do you have a link to back that up...?

just as MOST people still have jobs, MOST people are not behind or upside down on their mortgages, afaik...

[MrPerson]

8. News Google "cramdown"

[dysfunctional press]

10. where does it talk about most people being in the hole with their houses?

:shrug:

[MrPerson]

13. You said "in the hole"

Not in the hole on their houses.

Most people are in debt to their eyeballs.

[dysfunctional press]

16. no i didn't- you said that most people are, in response to someone else's mortgage question.

it's fairly obvious that most people in bankruptcy court are "in the hole" financially.

[MrPerson]

9. Psst. I do this for a living.

[dysfunctional press]

12. then it should be relatively easy for you to provide some backup....

when you said that most people are in the hole in regards to their mortgage.

[MrPerson]

14. I didn't say that.

Reread what you said.

Can we avoid a flame war please over this?

The good news is that poor people will be able to keep their homes.

[dysfunctional press]

17. maybe you should reread who said what...

"in the hole" wasn't my term to begin with.

[MrPerson]

18. Well then sorry. I meant in the broader sense

[MrPerson]

11. All my Chapter 13 clients have jobs.

[imdjh]

19. Looks like I should have been more specific

That I meant behind on their mortgage payments. But feature this: Comprehensive Consolidation. What if there was a program which allowed people to roll all their debt into their mortgage, keep the house, burn the credit cards? The credit card banks would be instantly in better shape wouldn't they? Not that they necessarily deserve this kind of save, from what I have read the credit card issuers are being even bigger assholes than usual, Chase Bank in particular (if that's possible).

I don't see this necessarily as a win-win, but at this point if we help those who can be helped and those who can't are going to crash and burn anyway, does it really matter if the crash and burn now or a year from now?

[MrPerson]

20. If you do a Chapter 13 you can pretty much

discharge the unsecured debt.

You file a plan with a 0% distribution to unsecured creditors.

If you have no disposible income after regular living expenses, you can get away with it.

[dysfunctional press]

6. if so- there's going to be a LOT of households with extra spending money over the next few months.

as a big chunk of those of us that are up to date try to fall behind.

[davidwparker]

21. what is 'arrears'?

[MrPerson]

22. Missed mortgage payments, late charges, atty fees, court costs.

Average arrears I see are 5 to 10 thousand.

[MrPerson]

23. Atty fees and Costs are usually 3k by themselves.

[MrPerson]

5. The fact that you can refi over 30 years and wipe out arrears

is the BIG change.

Lowering the interest rate - reducing the principal - not that big.

[On the Road]

15. If I Understand it Correctly

that seems like a very sensible provision:

- Don't let the banks drive homeowners into unecessary foreclosures.
- On the other hand, don't add to the woes of mortgage providers by causing more unessary losses.

- Give homeowners a way of dealing with the economic emergency without losing their house.
- On the other hand, don't forgive homeowners' debt -- just make it more manageable over the long term.

Seems to have all the right pieces.