There’s another danger to allowing bankruptcy judges to modify mortgages: it violates all the principles of contract interpretation and will make people uncertain as to the enforceability of their contracts. Judges can’t rewrite contracts; they can only interpret the provisions of the contract. People can enter into any contract they want - as long as it’s not against public policy - and there’s no public policy prohibiting people from entering into contracts they can’t perform.
Just floating this plan increases the risk inherent in home mortgages. Higher risk investments requirer higher returns so interest/points have to go up or availability of mortgages will go down. Implementing this Act will drive low income people out of market. Well unless government subsidizes the loan, like the City of Houston’s just quashed idea.
You are right but....................What has stopped activist judges ‘til now?
It will (imo) just raise interest rates and hurt housing!!
Cash (what is left) will be king?
Take care………pilgrim
“The American people will never knowingly adopt socialism, but under the name of liberalism, they will adopt every fragment of the socialist program until one day America will be a socialist nation without ever knowing how it happened.” Norman Thomas, a socialist and member of the American Civil Liberties Union
we have this now on investment property.
this is not new.
2nd mortages are being stripped off properties all the time.
that is a red herring.
remember the 2005 bankruptcy reform was to try and head off the housing bubble by fixing the rules to prevent cramdowns. They did not expect people to start walking away and buying the identical less expensive homes across the street.