Senate Defeats Bankruptcy Cramdown Bill
Yesterday, the Senate voted No to a measure that would have allowed Bankruptcy Judges to modify first mortgages on homesteads in Bankruptcy Court. This was a very important measure for Florida residents, especially in towns like Cape Coral, Lehigh Acres and Fort Myers. The question that no-one seems to want to answer is this: Until these jokers in Washington finally decide to do something, how many more homes will be lost to foreclosure? Where was the President? Where was the White House? How come there was no pressure being applied from the Executive Branch?
That is the problem right now. People are losing their homes because the big money didn't want the legislation passed. JP Morgan Chase & Co., Bank of America and Wells Fargo took a combined $95 billion dollars from the taxpayers. Although I cannot say for sure, I just wonder how much of that money was spent lobbying the Senators who voted against this measure. Senator Dick Durbin said the fight is not over, and the measure will be introduced at some time in the future.
The Banks want to control the mortgage modification negotiations for several reasons: First, they do not want individual homeowner going to Court to seek a fair resolution of the issues. Second, they do not want to allow a Bankruptcy Judge (who they have no control over) to decide the issues based upon evidence and re-write a mortgage down to the value of the house. It is much easier for a Bank to tell individuals that they can only move payments to the end of the loan. Take it or leave it! Likewise, if many people entered into bankruptcy to modify their loans, the value of the Banks real estate portfolios will really take a hit, which will call into question the true value of their businesses.
The way I see it, it is only a matter of time before we see the true effects of these jokers in Washington lack of vision and judgment. It is a shame that our elected officials have stopped listening to their constituents and have sold their souls to the big money. Foreclosures will not stop, modifications will not increase until the Banks and Mortgage Companies are forced to treat people fairly.
All the Hope projects did not work, actually they were a complete failure, and no-one discusses them any longer. Why, because the Government relied on the Banks and Mortgage Companies to do the right thing. But, the Banks and Mortgage Companies have their own agenda, and that is to make a profit in everything that they do. This is a time where the Banks and Mortgage Companies can score big points with individual homeowner and build a reputation of being the lender of the future. It is a fantastic opportunity to for them, yet it is being squandered for lack of vision and judgment. The taxpayer is again the loser. What a sad state of affairs.
This post was submitted by Carmen Dellutri, Esq., founder of The Dellutri Law Group, P.A. Currently, the firm has offices in Port Charlotte, Fort Myers, Naples and Sarasota. Mr. Dellutri also sits on the Board of American Board of Certification. Mr. Dellutri is also one of the founders of the Bankruptcy Law Network, Debt Law Network, Credit Law Network, and Mortgage Law Network. Mr. Dellutri also writes for the firm's personal injury litigation blog. Mr. Dellutri also writes for the firm's bankruptcy blog.
