Solution to the Mortgage Crisis: Make Home Loan Modifications Mandatory

Congress should pass a law forcing financial institutions to make mandatory home modifications to deserving homeowners. Unfortunately, the banking industry has a lot of friends in Congress and it is very unlikely a bill of this nature would be passed by Congress.

Sub Prime Loans

Many of the loans given by financial institutions were called “sub-prime loans”. The sub-prime loans basically duped prospective homeowners into believing that they could afford to buy homes that were, without question, out of their financial reach. Many of the subprime loans had initially interest only payments that increased to include principal over time.

Since the homeowner could barely afford the mortgage-only payment when the mortgage amount increased to include interest or a balloon payment became due, they had no possibility of making these payments.

New Bankruptcy Law in New York

On January 22, 2010, a new bankruptcy statute went into effect in New York State. This allowed individuals filing bankruptcies to keep up to $150,000 of the equity in their home. For a home owned by a couple, up to $300,000 in equity in their home can be kept while the parties file bankruptcy and discharge their debts.

Home ownership and the fair value of real estate provides economic stability to millions of Americans. In the event the economy in the United States were to stabilize, the real estate market also must be stabilized. Homeowners should not be forced to watch the value of their greatest single asset, their home, falling in value each and every month.

Mortgage Modification Assistance

We can help you with mortgage modification issues. Should your home go into foreclosure, the Law Office of Elliot S. Schlissel can see to it that the foreclosure is stopped in its tracks and you are not thrown of your home. We litigate foreclosure proceedings. We attend court conferences on behalf of our clients. We litigate bad faith loan practices by financial institutions, predatory lending practices, as well as defective foreclosure lawsuits issues. We also maintain this foreclosure blog to help educate the general public. Should you have mortgage modification or foreclosure issues, call us at 1-800-344-6431; 516-561-6645 or 718-350-2802. The Law Office of Elliot Schlissel responds to emails and our phones are monitored 24/7.

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The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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