Let them modify their mortgages in Bankruptcy...

[MrPerson]

And forget the rest.

The days of mortgage brokers phonying appraisals would end.

[Idealism]

1. Problem is, as the FDIC found out, that "cram downs" are not very efficient

You must get a judge to rule on each mortgage, which takes a fair amount of time and costs tax payer money. The FDIC did I believe 5000 mortgage modifications through bankruptcy courts and had something like a 40% success rate (or a 60% failure rate, depending on your view).

[MrPerson]

2. I do it for a living. Its not that expensive.

Most will be entered by default.

[Idealism]

3. Loan modifications are different than "cram downs"

Cram downs require a bankruptcy judge to rule on them. Loan modifications can be done by any mortgage brokerage/bank/banking affiliate

[MrPerson]

4. I said modify in bankruptcy. Not loan modification. Read the OP

[Idealism]

5. I guess I read the title too fast

All I saw was "mortgage" and "bankruptcy" and I immediately think cram-downs in bankruptcy court. sorry

[MrPerson]

6. Idealism can be blind sometimes. No biggie.

[texastoast]

7. I heard it's about 9 million homes that are at risk

Not enough judges to get that to happen. I say make the banks pay to bring them all back in and renegotiate.

[MrPerson]

8. You can see where I'd want the business huh?