Lower the Balance of the First Mortgage
On March 5, 2009 the House passed legislation to allow bankruptcy judges to lower the interest rate and the principal balance of the first mortgage in Chapter 13 Bankruptcy.
The measure however is expected to face strong opposition in the Senate. It is expected that the Senate will vote on the measure in April, 2009.
Expert say that if the law passes the Senate and judges will have the power to rewrite mortgage terms it will cause a run to the bankruptcy court by many cash strapped homeowners who without any success tried to negotiate with the lenders to have their mortgage payments lowered. For up to date developments regarding this legislation please visit our blog at: www.easybankruptcyblog.com