Joliet Bankruptcy Attorney on Obama’s Refinancing Proposal

The Federal Government is proposing a method for those who are up to date on their mortgages to be able to refinance at the current, historically low rates states Joliet bankruptcy attorney David Siegel.  This idea will definitely not pass with the House Republicans because it puts the administration of said loans in the hands of the FHA.  The Republicans want less government involvement, not more.  This idea to allow for the refinancing is an effort to end the foreclosure crisis and improve the housing market going forward.  One of the biggest negatives under the current administration is the economy which is fueled, in part, by the loss of equity in homes.  

It is one thing to lose equity, it is quite another to lose the home in its entirety.  Perhaps Chapter 13 would be an option for those in foreclosure to consider.  The arrearage portion can be repaid over the next three to five years and the current mortgage payment can be made directly to the lender once again.  It is amazing to me that the Federal Government has not touted Chapter 13 as an option.  After all, bankruptcy is Federal law and the bankruptcy code provides for homeowners to keep their homes by reorganizing the debt.  If you are struggling to make your mortgage payments, consider both modification and bankruptcy as possible solutions.