On behalf of Law Offices of Mark M. Kratter, LLC on December 21, 2011
Owning a home used to be an essential element in attaining the ideal American Dream. Now, it seems for many homeowners, their mortgage has made this once wonderful dream the American nightmare. Many people are struggling to make their mortgage payments, but now new relief could be on the way. A proposal currently being considered could help those in Chapter 13 bankruptcy reduce the total amount owed on their debt.
The Federal Housing Finance Agency is reviewing the proposal that would allow homeowners who currently owe more on their mortgage than their house is worth, pay zero percent interest for five years on their mortgage. The proposal would help those in Chapter 13 bankruptcy that have mortgages supported by Fannie Mae, Freddie Mac and the FHFA. This could mean substantial relief for those who have become unemployed and have a house value that has dropped since the financial downturn over the past few years and housing bubble burst.
These agencies currently support around 90 percent of all mortgages in the United States, meaning this proposal could help a lot of people. However, it would require approval by the homeowner's bankruptcy judge in order to take part in the program.
Many homeowners are desperately seeking relief for their financial situation. Sometimes through no fault of their own, people face financial troubles, and Chapter 13 might be one way to assist with getting your financial life back on track. An experienced bankruptcy attorney can help you decide how to get out of debt and limit damage to your financial future.
Source: Reuters, "Regulator considers mortgage debt reduction for bankrupt: report," Dec. 20, 2011
