Bankruptcy INK

In light of the downward spiraling real estate market, President Bush has proposed a plan to help those facing the possibility of foreclosure. The plan is intended to help those with adjustable rate mortgages. It would lock in the introductory rates for 5 years, thereby staving off the significant increase expected in these mortgages.

This plan, it is hoped, will stave off foreclosure for many individuals, and give them time to refinance a lower fixed rate. Unfortunately, this plan has many holes. The plan is only applicable to those that are current with their mortgage payments, and can’t afford the increased payment that their ARM will bring. Additionally, it does not help those already facing foreclosure. Most opponents do not believe that the plan is sufficient enough to overcome the markets problems and point to the pending Bankruptcy Bill that would allow bankruptcy judges the freedom to alter mortgages in Chapter 13. This legislation will allow families to enter Bankruptcy and get the proper help they need; a sustained lower mortgage payment.

In the end, this plan will help some, but it is not enough. If the pending Bankruptcy legislation passes, this will go a long way towards helping the crisis. Chapter 13 is already a great asset for individual homeowners. This new legislation will only increase the many reasons you should file Bankruptcy to save your home and financial future.