Loan Modification

Obama Did Not Keep His Promise To Home Owners

By Kent Anderson, Oregon Bankruptcy Attorney

In his presidential campaign Obama promised to support judicial modification of home loans.  This promise remained on his campaign website until he was inaugurated as president.  When the new president?s Obama White House website went up, the promise of support for judicial modification of home loans went down and was nowhere to be found.  The important issue of mortgage modification in bankruptcy was left behind, just as the hopes and dreams of many homeowners were dashed by foreclosure.

The Obama administration pushed forward a voluntary program, the Home Affordable Mortgage Modification Program and the Home Affordable Refinance Program that has helped few homeowners and frustrated many who lost their homes after repeated pleas to bewildered and inefficient mortgage servicers.   Some borrowers took aggressive action and hired lawyers to defend against foreclosure.  A number of courts have ruled for the homeowners against slipshod home foreclosure practices by lenders.  But many homeowners just moved out when their homes were foreclosed despite their best efforts.

Studies have shown what common sense makes obvious.  Loan modification works better if the payments are lowered.  Lowering payments and adjusting home loan balances is just the type of practical and effective change that bankruptcy courts have been making in loan terms for bankrupt corporations and business for many years.  Isn?t about time that consumer debtors got a break?  How about keeping your campaign promise Mr. President?

Related posts:

1. What is the Obama Administration’s Home Affordability and Stability Plan?
2. Where is Obama’s 90-day Foreclosure Moratorium?
3. Do I qualify for a mortgage refinance under the Obama Plan?

Full post as published by Mortgage Law Network on January 07, 2010 (boomark / email).