It should come as no surprise that President Bush has vowed to veto pending mortgage relief legislation. Instead, he trots out the Treasury Secretary who advises that the homeowner needs to ask for assistance directly from the lender. These are the same lenders who over-served the thirsty homebuying public with ridiculous loan packages. These same lenders who have voluntarily modified less than 5% of the current loans which are in default according to Moodys. Although the vow to veto comes as no surprise, neither does the attempts of the administration to fool the public into believing that the Hope Initiative would have much effect.
It would be refreshing to see government pick a side or pick a direction. The voluntary attempts to help homeowners have not helped. The legislation attempt would be a great help to those who are truly in need and can be narrowly written so that the masses are not forced to suffer for the few. If the President would like to see market forces determine the foreclosure crisis fate, then simply stand aside and let the dice fall. Otherwise, the non-binding efforts and speaches from the Treasury Secretary will appear more and more like hypocritical politics as usual.
Lastly, how strong is the mortgage and banking lobby where they have the only debts that cannot be altered in Chapter 13 bankruptcy cases?
For More Information, visit Chicago Bankruptcy.