Consumer Law

Times Article on Impact of Bailout on Distressed Homeowners

By Jeff Sovern

Amid the welter of articles on the bailout proposal is this one in today's Times on the impact of the bill on homeowners: "A Bill Encouraging to Distressed Homeowners, but Its Reach is Unclear."  An excerpt:

The legislation does take steps to help some troubled borrowers modify their mortgages. As part of the package, the Treasury Department would purchase problematic mortgage-related assets. The bill would also set up a program to assist homeowners by encouraging the companies that service the mortgage-related assets the Treasury owns to take advantage of the Hope for Homeowners program.

The article also notes that the bill does not give bankruptcy courts the power to alter the terms of mortgages on primary residences.  It also quotes our own Alan White.  A copy of the bill is available here.

Full post as published by CL&P Blog on September 29, 2008 (boomark / email).