Thursday, May 29, 2008 This is a big deal, and will no doubt strike real fear in the hearts of stated-income lenders everywhere. Judge Leslie Tchaikovsky ruled that a National City HELOC that had been "foreclosed out" would be discharged in the debtors' Chapter 7 bankruptcy. Nat City had argued that the debt should be non-dischargeable because the debtors made material false representations (namely, lying about their income) on which Nat City relied.... The court agreed that the ... >>full
Bailout Won't Stop Foreclosures that Push Down Everyone's Property Values
Mike Calhoun President, Center for Responsible Lending
September 22, 2008 Article was abridged.
The government plan announced by Treasury Secretary Paulson and Fed Chairman Bernanke fails to deal with the root cause of the crisis -- families in foreclosure -- and instead is purely and simply a bailout of the lenders who created this disaster. The bailout will not solve our economic problems because it will do virtually nothing to stop the foreclosure epidemic. Continuing foreclosures will drag down the ...
There appears to be 303 sections of this bill and the only mention of helping homeowners in financial difficulty are section 109 and Section 110 which are below “verbatim”.
Section 109. Foreclosure Mitigation Efforts. For mortgages and mortgage-backed securities acquired through TARP, the Secretary must implement a plan to mitigate foreclosures and to encourage servicers of mortgages to modify loans through Hope for Homeowners and other programs. Allows the Secretary to use loan guarantees ...
They fueled this fire with no regard to a borrower’s best interest. They weren't happy just to bend a few rules. They threw the rules out the window. Anyone who was breathing was fair prey. They devised very sophisticated sales pitches and created sham companies to get kickbacks. They devised incentive plans like the Yield Spread Premiums to get brokers to slam borrowers into higher rates. Lenders operate captive reinsurance companies, title abstract companies, vendor management companies, and make ...
