Bankruptcy cram-down a possiblity again says Congress?
http://www.washingtonpost.com/wp-dyn/content/article/2009/09/09/AR2009090901697.html
Bank of America and Wells Fargo, perhaps the largest players in the mortgage market in California are way behind other banks in approving loan modifications. It seems fairly obvious that with the current voluntary status of the Making Home Affordable Program, these banks have no incentive to step up to the challenge, rather, they would like to throw up excuses as to why they cannot live up to their commitment to the government and to the tax payers, when their peers are able to do so without as much difficulty. Something drastic has to happen to make these banks adhere to their commitments to the tax payers for receiving aid in their times of need last year.
The prospect of Bankruptcy Judges being able to freely modify loans at their discretion will certainly light fires under these banks’ feet to get them to move more quickly. While these bank executives have time to contemplate their financial moves, homeowners lives are being affected on a daily basis. Real people and their children’s lives are forever being altered; these are not just loan numbers.
We do not live in a perfect world, simply hoping that these profit driven institutions will do the right thing is wishful thinking at best.
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