| Struggling homeowners who've been considering | | | | down bill is but one measure planned to help |
| filing Chapter 13 bankruptcy may soon receive | | | | achieve this goal. |
| good news. A new piece of legislation referred to | | | | Mortgage companies, some moderate Democrats, |
| formally as the "Helping Families Save Their Home | | | | and a large number of Republicans are opposed to |
| Act," or more commonly as the "cram down bill," | | | | the cram down bill, arguing that it'll only make |
| is on its way to the Senate. | | | | matters worse. Not only do lenders face the |
| Designed to complement President Obama's | | | | prospect of losing money on these modified loans, |
| strategies to quell the nation's foreclosure and | | | | but some believe that a proposal like this only |
| economic crises, the cram down bill would allow | | | | serves to reward the financially irresponsible, and |
| bankruptcy judges to modify the terms of a | | | | punish those who practiced fiscal restraint. |
| person's mortgage if they face losing their | | | | While it is certainly true that many Americans |
| property to foreclosure. | | | | purchased homes that were beyond their means, |
| Under the proposed bill, judges could reduce the | | | | it is also true that lenders must own their share |
| loan's interest rate, lengthen the loan term, and | | | | of the responsibility for issuing loans to people |
| decrease the principal amount owed. All of these | | | | who had no reasonable hope of affording them. |
| actions would ultimately result in lower monthly | | | | Regardless of who is to blame, the time has |
| payments for the homeowner, and allow him and | | | | come to look forward. No one can change what |
| his family to remain in the home. | | | | happened, so it's time to pull together and come |
| Loan modification is not a new solution for | | | | up with practical solutions. |
| distressed homeowners, but lenders currently only | | | | Banks and major corporations have received |
| modify loans on a voluntarily basis. Lenders have | | | | bail-out funds, so perhaps it's time to bail out |
| all the power, and homeowners are subject to | | | | those who truly feel the brunt of the economic |
| whatever agreement the bank sets out. With the | | | | crisis-the average homeowner. |
| new cram down legislation however, bankruptcy | | | | With layoffs occurring in record numbers and |
| judges will be able to override stubborn lenders, | | | | property values continuing to plummet in some |
| and help families save their homes | | | | regions, many Americans are feeling this recession |
| While the cram down bill would certainly help | | | | with acuity. People are struggling to feed their |
| those who are facing bankruptcy and foreclosure, | | | | families, fear is setting in, and the economy is |
| the bill also has the potential to strengthen our | | | | slowing down even further. Perhaps the cram |
| economy as a whole. | | | | down bill will give desperate homeowners a |
| Wherever there is a foreclosure, the property | | | | much-needed break-a bail out if you will, so that |
| value of every home on the street is affected. | | | | they won't end up on the streets. Perhaps with |
| This in turn upsets the economic viability of entire | | | | their new monthly savings, they can pump money |
| neighborhoods and communities, then states, then | | | | back into the system, and invigorate this slumping |
| the nation. | | | | economy. How novel a concept-economic revival |
| With global markets in such dire straits as they're | | | | from the bottom up. |
| currently in, it's critical that the number of | | | | The cram down bill is slated to be taken up by |
| foreclosures in this country is quelled. The cram | | | | Senate after the April recess. |