Will a New Bankruptcy Mortgage Law Help Kapolei Home Owners?

"Cram down" bill could be voted on tomorrow in the Senate

One of the ways that some leaders are trying to reduce the number of foreclosures expected in the coming months is through a "cram down" bill. The bill is designed to allow bankruptcy judges the power to change loan terms. Advocates of the bill believe it will do more than such programs as Project Lifeline could accomplish on their own. Inman News reports on the possible benefits of the "cram down" bill:

Giving bankruptcy judges cram down powers
might provide an added incentive for lenders to conduct their own loan
modifications, instead of having them imposed by a court, Congressional
Budget Office researchers said in a recent
report.


Others, however, counter that such a measure would increase the costs of borrowing money for a mortgage, making it difficult for first-time borrowers.

For more on the latest in efforts to save the mortgage industry, as well as effects on the Kapolei real estate market, contact John Riggins.


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