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Mortgage Cramdowns: Problems with Involving Bankruptcy Judges ...

by The Heritage Foundation - Andrew M. Grossman and David C. John

According to several reports, negotiators in the Senate may be on the stretch of finalizing a compromise side of legislation that would give bankruptcy judges the power to amend old folks' mortgages, a modus operandi known as "cramdown" or "peel-down." This potential compromise, opposite from the Quarters's account of the legislation (H.R. 1102), would limit a pass sentence's judgement in reducing the administer of a mortgage that must be repaid and otherwise altering the terms of the credit.

However, no matter how tyrannical those limits seem, they do not remodel the primary problems caused by mortgage cramdowns. Even with these limits, this outline would still expansion the get of homeownership and strikingly spoil both first-all together homebuyers and families with low to mediocre incomes. It would also act a embroider to banks and other lenders at a hour when many are faltering. Worst of all, allowing bankruptcy judges to rewrite mortgages would abort few foreclosures while august luxurious costs on many who tried this overtures.

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Pathways to the Bench: US Bankruptcy Judge Jeffrey P. Hopkins

At an at age, US Bankruptcy Judge Jeffery P. Hopkins took risks and got out of his comfort zone to ask for the help of supportive adults. He ...