More on Loan Modifications

Below is a great article that talks about “cram downs” and how they are gathering steam. According to the article “In a cram-down, a judge modifies a loan, often reducing principal so a borrower can afford it. Lenders hate it because they have to absorb the loss. Bankruptcy judges currently have the ability to modify certain personal loans and even mortgages on vacation homes, but they can not cram-down mortgages on primary residences.”

The article goes on to talk about Obama’s much anticipated foreclosure prevention plans.  As I have mentioned time and time again, we need to stop foreclosures to get home values to stabilize.  It is not just a matter of supply and demand. 

http://online.wsj.com/article/SB123068005350543971.html?mod=todays_us_money_and_investing  

Here is a list of TARP participants

http://online.wsj.com/public/resources/documents/st_BANKMONEY_20081027.html

Here is a chart with the different models for modifications.

http://online.wsj.com/public/resources/documents/st_MortgageModificationPrograms_20081231.html