The Bailout
As we all know, the government has spent billions of taxpayer dollars propping up large banks because they hold bad ("uncollectable") mortgages. These same banks, despite receiving billions in taxpayer dollars, are still foreclosing on home owning taxpayers with a vengeance. We are even aware of situations where the homeowner is current on a mortgage, but upon reaching a balloon payment, the lender refuses to renew the loan and initiates foreclosure proceedings!
A limited "Hope for Homeowner" bill has been passed, and Congress is also considering additional legislation which could allow homeowners to write their mortgages down to the value of the home in a Chapter 13 proceeding, entitled the "Helping Families Save Their Homes in Bankruptcy Act of 2009". The Bill (HR 1106) has passed the House and is currently pending in the Senate. The mortgage industry has mounted an intense lobbying effort in opposition to the bill. The lender opposition to the bill is especially perplexing when one considers that the lender, should it foreclose and evict the family from its home, could still only sell the property for what it is currently worth.
Check back to this site as time goes on and we will keep you posted on the fate of this much needed bill.