You may have heard it called "Cramdown" legislation and it's designed to help financially distressed homeowners from losing their homes to foreclosure. So the idea is in a Chapter 13 bankruptcy, the homeowner shows that they owe $200,000 on their home but the home is now only worth $80,000 the courts will tell the banks that now the homeowner only owes you $80,000 and you can't foreclose, so live with it.
What are your thoughts? This sounds too good to be true for some and has others completely up in arms thinking about the people that will take "advantage" of such a law and may default even if they really could pay their mortgage.
My opinion, for what it is worth is that it could be great for some very unsuspecting people that were taking advantage of by unscrupulous mortgage brokers, banks and Realtors. Ouch did I just say that? Sorry but it really is true. Many people were taken advantage of and the guilty of the originators is what it is. So again in my humble opinion, there needs to be laws in place to stop that and if the banks suffer some more because of it, well so be it. They may learn a thing or two- Those that are left.
My advice and only my opinion again is that if you are in a position that you need to possibly foreclose on your property, talk to a lawyer first. Get advice from them and only after you really know all the facts, should you go forward with your plans to foreclose. The time you take could save your home, a lot of aggravation and many sleepless nights.
For more information on foreclosures, feel free to contact us at 239-368-8520.
AAA Realty LLC
55 Homestead Rd N
Lehigh Acres, FL 33936
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