{"id":6980,"date":"2009-02-20T15:50:59","date_gmt":"2009-02-20T22:50:59","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=6980"},"modified":"2009-02-21T09:41:30","modified_gmt":"2009-02-21T16:41:30","slug":"bankrupt-ideas-for-changing-bankruptcy","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6980\/bankrupt-ideas-for-changing-bankruptcy\/","title":{"rendered":"Bankrupt Ideas for Changing Bankruptcy"},"content":{"rendered":"

Two excerpts from a local article:\u00a0 Bankruptcy reform could help hard-up homeowners<\/em><\/a><\/p>\n

Overwhelmed by debt from credit cards<\/strong>, a $536-a-month<\/strong> truck payment, $8000 in overdue property taxes and two<\/strong> mortgages, the single<\/strong> homeowner is hoping (San Diego bankruptcy attorney) Colwell can remove the $84,000 second loan on his home, which is now worth about $100,000 less than what he originally paid.\u00a0 (emphasis mine<\/em>)<\/p><\/blockquote>\n

———————————<\/p>\n

House Speaker Nancy Pelosi (says) Congress is prepared to act on the (bankruptcy) legislation so “responsible<\/strong> homeowners can stay in their homes.” (emphasis mine<\/em>)<\/p><\/blockquote>\n

The obvious question here is: Does House Speaker Nancy Pelosi know she’s a caricature?<\/p>\n

But let’s go beyond the obvious for a moment and take a rational, economically based look at President Obama and Congress’ plan to allow bankruptcy judges to modify mortgages.\u00a0 Why?\u00a0 Because the effect of this legislation will impact not only home buyers, real estate agents and lenders but pretty much anyone who plans on using a mortgage to purchase or refinance a home in the foreseeable future.<\/p>\n

This is not the venue to bore you with arcane language and minutiae on how mortgage back securities work.\u00a0 Suffice to say that, as with all investments, investors in<\/em> mortgage backs (upon which all mortgage rates are based) are happiest when they feel safest.\u00a0 The more comfortable they are in their expectation of future redemption rates, the less profit they expect in return for purchasing mortgage backs.\u00a0 Translation: a safe & happy mortgage back investor equals a low mortgage rate.<\/p>\n

But, when you give a bankruptcy court the power to modify a loan at their own prerogative, you introduce the unknown and unstable into the world of our happy little mortgage back investors – you introduce risk<\/strong>.\u00a0 Confronted with an increase in risk, investors naturally want an increase in reward.\u00a0 That means higher rates across the board. This is not rocket science.<\/p>\n

Says Dustin Hobbs, spokesman for the California Mortgage Bankers Association,<\/p>\n

“If there’s the fear that judges can at any time modify mortgages, it’s no long the safe investment it was, and investors will charge mortgage bankers more to buy the loans – costs that will be passed on to Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Two excerpts from a local article:\u00a0 Bankruptcy reform could help hard-up homeowners Overwhelmed by debt from credit cards, a $536-a-month truck payment, $8000 in overdue property taxes and two mortgages, the single homeowner is hoping (San Diego bankruptcy attorney) Colwell can remove the $84,000 second loan on his home, which is now worth about $100,000 […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[251,26,5],"tags":[294],"class_list":{"0":"post-6980","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-big-mother","7":"category-lending","8":"category-real-estate","9":"tag-bankruptcy","11":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":11505,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11505\/in-defense-of-home-loan-cramdown\/","url_meta":{"origin":6980,"position":0},"title":"In defense of home loan cramdown!","author":"Damon Chetson","date":"March 9, 2010","format":false,"excerpt":"Al's got a post up about the latest effort to get us out the housing mess. The feds are rolling out HAFA, set to take effect April 5, which will solve all of our problems! by giving financial incentives! for borrowers, servicers, and investors! In exchange, creditors must release borrowers\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10552,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10552\/into-the-belly-of-the-beast\/","url_meta":{"origin":6980,"position":1},"title":"Into the belly of the beast…","author":"Damon Chetson","date":"December 12, 2009","format":false,"excerpt":"So I've been building a criminal practice... I've now reached the point that I'm bringing in enough clients to make that self-sustaining in terms of paying the bills and generating some income. Criminal practice is fun, but limited in terms of compensation. My intention has always been to add at\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13382,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13382\/rule-of-law-and-all-that-the-foreclosure-mess\/","url_meta":{"origin":6980,"position":2},"title":"Rule of Law and All That: The Foreclosure Mess","author":"Damon Chetson","date":"October 17, 2010","format":false,"excerpt":"Suffice to say, I take a different view of the current foreclosure - robo-signer - problem now confronting the mortgage industry. Where Greg calls the banks' fraud upon the court \"procedural laxities,\" I say the banks are committing, wait for it, \"frauds upon the court.\" Greg does a neat rhetorical\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5244,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5244\/arthur-laffer-the-age-of-prosperity-is-over\/","url_meta":{"origin":6980,"position":3},"title":"Arthur Laffer: “The Age of Prosperity Is Over”","author":"Greg Swann","date":"October 27, 2008","format":false,"excerpt":"The author of the Laffer Curve in the Wall Street Journal:When markets are free, asset values are supposed to go up and down, and competition opens up opportunities for profits and losses. Profits and stock appreciation are not rights, but rewards for insight mixed with a willingness to take risk.\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6862,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6862\/should-we-be-a-good-society\/","url_meta":{"origin":6980,"position":4},"title":"Should We Be A Good Society?","author":"Thomas Hall","date":"February 10, 2009","format":false,"excerpt":"Every morning - even in near zero degree weather - I walk my two dogs around my neighborhood - the jaunt is roughly 4 miles with a brief but necessary Starbucks break. While I'd like to admit the motivation is to remain healthy, the reality is the required expresso jolt\u2026","rel":"","context":"In "Group Therapy"","block_context":{"text":"Group Therapy","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/group-therapy\/"},"img":{"alt_text":"lunt new construction","src":"https:\/\/i0.wp.com\/farm4.static.flickr.com\/3513\/3269378565_18325481ec.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":13714,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13714\/gm-ipo-4-uaw\/","url_meta":{"origin":6980,"position":5},"title":"GM IPO= $ 4 UAW","author":"Brian Brady","date":"November 26, 2010","format":false,"excerpt":"Here is yet another example of how the sharp noses of the Bloodhounds, caught a whiff of the stench, before the media did: Do you remember how Sean Purcell was confused with the mathematics behind the GM IPO? You know, I seriously don\u2019t mind when others try to mislead me\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6980","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=6980"}],"version-history":[{"count":10,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6980\/revisions"}],"predecessor-version":[{"id":7020,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/6980\/revisions\/7020"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=6980"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=6980"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=6980"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}