Bankruptcy courts have had the power to modify terms of non  home loans ( rental property, commercial real estate) for years.  There has been  no significant difference in the mortgage rates charged  for these type morgages and home mortgages.  

Typical. What more can we expect than for the Dems in power in the House in Senant to perpetuate the same bad policies that got us all in this big mess, just to look good to their constituancies. These policies just reward and encourge  a lack of personal responsiblity and lblame EVERYTHING that goes wrong on the "greedy"  wealthy. Modus operandi for muck rakers such as Pelosi and Reed. Wise up people.

So we should leave these decisions to the financial institutions because they have been so successful in managing their debts in the past?  But the goverment is good enough to bail them out - just not regulate?

There has to be a middle ground - Yes, wise up people!

The problem is, when a "homeowner" (and i use that term loosly) does have trouble, the banks or lending insitution has little incentive to help. Some one (courts?) needs to step in and judge if the borower is genuine in his/her efforts. They need help without having to pay some lawyer more money they dont have to help.

len , they have to file bankrupy. to get help. what wallstreet company has done that? and the goverment has given them billions, and no one know s were that money even is.

so i dont think any american should have to file bankrupy to get help.why should they. wallstreet has stuck it r u our as. and potato head paulson has rape all americans from billions to his freinds.

so i say f-them on wallstreet.

and i hope all americans just file for the hell of it . watch them crap in their pants, because they should have modifie all loans 3 years ago. and they said no way..

david a belanger

veteran us army

for-america@hotmail.com

Banks received the money (taxpayer money!) to assist homeowners in re-doing their loans.  Most never did. Now they want to charge higher interest rates to help homeowners.  Yes, people have to take responsibility, but since the goernment DID send money to the banks to help, the banks have an obligation to assist.  And obviously none of our legislatures ever thought to track the money, just hand it out to the banks.  What a deal!  Nothing like a stong lobby!

DE

here is the truth about what to expect people, and i think he very very light

The U.S. recession will last seven full years, with gross domestic product falling a cumulative 25%, said Nouriel Roubini, chairman of RGE Monitor. Roubini was one of the first economists to predict the recession and the credit crunch stemming from the housing bubble. For 2009, Roubini predicts GDP will fall 23.5% with declines in every quarter of the year. The unemployment rate should peak at about 19% in early 2011, he said. Consumer prices will fall about 20% in 2009. Housing prices will probably overshoot, dropping 64% from the 2008 through mid-2010. "The U.S. economy cannot avoid a severe contraction that has already started and the policy response will have only a limited and delayed effect that will be felt for years to come he see at least 7 years of decline.

now read and weep americans, this is what the truth is, and it comming down fast.

here is the truth about what to expect people, and i think he very very light

The U.S. recession will last seven full years, with gross domestic product falling a cumulative 25%, said Nouriel Roubini, chairman of RGE Monitor. Roubini was one of the first economists to predict the recession and the credit crunch stemming from the housing bubble. For 2009, Roubini predicts GDP will fall 23.5% with declines in every quarter of the year. The unemployment rate should peak at about 19% in early 2011, he said. Consumer prices will fall about 20% in 2009. Housing prices will probably overshoot, dropping 64% from the 2008 through mid-2010. "The U.S. economy cannot avoid a severe contraction that has already started and the policy response will have only a limited and delayed effect that will be felt for years to come he see at least 7 years of decline.

Here we go, get ready for the whiners to let out their usual sob stories as congress belatedly moves to re-regulate certain bad-boy industries. The bankruptcy provision of which you write has previously been the prerogative only for those with second homes and for commercial entities. Now that we're going to get a little parity, the moaning and rending of clothes by the monied classes begins. What this dandy little provision will do is pop the bubble that has killed the mortgage loan industry; in one sweep, it changes mortgage debt to something resembling the value of the residence, thereby keeping a buyer in it making payments on an obligation with fixed terms at a market rate; it allows the mortgagee to keep the mortgage which now, miracle of miracles, is BANKABLE. And all done under the experienced and conservative eye of the bankruptcy court judges. The mortgage industry should be welcoming this with open arms for, instead of writing these babies off or trying to sell them to the federal government, they are being healed of their awful sins and restored to a portfolio that just might be worth something soon.  And the courts will do all their work for them. Wake up and take the medicine like grown-ups.

Chapter 12 - Agricultural bankruptcy has always allowed a cram down in principal by the BK Trustee subject to court approval. Big winners are the BK Trustee and the lawyers, big losers are usually the borrower due to the mandated sale of property by a specific date if bench marks of repayment are not made.