Credit Suissse Says Mortgage Modification Bill would cut foreclosures by 20%

Highly respected Credit Suisse has concluded in a new study that US foreclosures would decrease by 20% if Congress enacts mortgage modification legislation.  The report went on to conclude that if lenders knew that courts could cram-down – or lower involuntarily – the loan amount, lenders would have the incentive to modify more failing loans on their own.

“We expect the new bankruptcy reform will increase loan mods, particularly principal reduction mods, as it is likely to both pressure and also give justification to servicers to more actively pursue principal reduction mods,” the report from Credit Suisse Fixed Income Research stated.

What does this mean for you, the homeowner? 

• Your lender really doesn’t want to help you
• Your lender will help you if it feels that you have a strong bargaining position
• You won’t have a strong bargaining position unless Congress gives you the power to modify your mortgage loan in bankruptcy court – just like Donald Trump can do for his casinos, for example.
• So write your congressman and senators.  Don’t let the fat-cat lobbyists take your home away.

Related posts:

1. Mortgage Modification Bill Advances in Congress
2. Bankruptcy Modification Will Prevent 20% of Foreclosures
3. Mortgage Law Network Contributor Explains Pending Mortgage Modification Bill on Fox Business News