Soon Bankruptcy Judges May Negotiate Mortgage Terms for Homeowners
A few days ago, I started the Daytona Beach Mortgage Mitigation Update page on my main website, www.lynnbyrne.com. It seems that mortgage modification is now a hot topic in Washington and more news is coming out nearly everyday.
A few days ago, Citibank, removed its opposition to bankruptcy judges and trustees negotiating mortgage modifications with lenders and banks on behalf of homeowners. Now, I’m a bit confused that our representatives in Washington need the approval of Citibank or any other bank to push through new laws, but that seems to be the way it is.
What’s It Mean?
For owners of Ormond Beach or Daytona Beach condos and homes, it means many homes that would have gone into foreclosure will not come on to the market. That’s good news for home values and will contribute to stopping falling prices. Of course it’s not going to happen immediately, the legislation won’t pass until February and bankruptcy courts and lawyers are overwhelmed by the sheer volume of bankruptcies. But, it’s a good thing if the foreclosure process is stopped on homes currently in the system.
We still have over 5600 homes and condos for sale in the MLS, while last year’s total Daytona Beach real estate sales were about 2900 properties. The inventory number needs to go down and this may be the start of the process.
Combined with the recent announcement by Bank of America and Countrywide that they will attempt to modify 630,000 mortgages, we are starting to see some attempts to change the present foreclosure nightmare. There are an estimated 9,000,000 homes in risk of foreclosure over the next three years unless these and other changes are actually implemented.
Stay tuned, we will continue report on developments as they happen.
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2 responses so far ↓
1 All about Loan Modification » Why not allow mortgage modifications in Chapter 7? : Bankruptcy … // Jan 26, 2009 at 5:25 am
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2 beachdude // Feb 1, 2009 at 10:38 am
The most common mortgage modifications are listed below:
lowering the mortgage interest rate
reducing the mortgage principal balance
fixing adjustable interest rates within the mortgage
increasing the loan term throughout the mortgage
forgiveness of payment defaults and fees
or any combination of the above
Check out this public service site: http://mortgagemodificationinfo.org
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