David Kirkpatrick

November 29, 2008

Modifying home loans via bankruptcy …

Filed under: Business, Politics — Tags: , , , , , — David Kirkpatrick @ 6:03 pm

… is actually a pretty good idea.

From the Obsidian Wings link:

Mortgages And Bankruptcy

by hilzoy

A bankruptcy judge in the Washington Post:

“Homeowners are the only ones who cannot modify the terms of their secured debts in bankruptcy. Corporate America flocks to bankruptcy courts to do precisely this — to restructure and reamortize loans whose conditions they find onerous or can no longer meet. Airlines are still flying and auto parts makers still operating because they have used this powerful tool of the bankruptcy process.

And from later in the post:

Perhaps it once made sense to think that mortgages should not be restructured in bankruptcy. I don’t think it makes sense now. It would be great if a repeal of this provision of the bankruptcy laws were one of the bills that will be waiting for President Obama to sign when he takes office.

1 Comment »

  1. […] Originally posted here: Modifying home loans via bankruptcy … « David Kirkpatrick […]

    Pingback by Manufactured Housing » Blog Archive » Modifying home loans via bankruptcy … « David Kirkpatrick — December 1, 2008 @ 12:11 pm

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