The Senate today rejected a provision allowing bankruptcy judges the authority to modify (“cram down”) mortgages of troubled homeowners. The provision garned only 45 votes, with all Republican Senators voting against it plus 12 Democrats. The banking industry has much greater clout in the Senate compared to the House where a simiar provision passed. It would appear this Obama supported measure is now dead.

The Treasury provided a fact sheet yesterday about the Administration’s plan for dealing with homeowners with second mortgages struggling to make their payments. These payments could be lines of credit or second loans used to limit or eliminate down payment requirements.  It’s part of the Administration’s Making Home Affordable program.

The Second Lien announcement provides a fact sheet of how the program will work, and the Making Home Affordable site provides info on refinancing or modifications to home loans.

The House earlier this year passed their version of giving Bankruptcy judges authority to modify ( or “cram down”) homeowner loans in the housing rescue bill, but that provision has stalled in the Senate under heavy pressure from the banking industry. Read the rest of this article »

Today’s Wall Street Journal front page headline states “Banks Ramp Up Foreclosures” and a look at Ventura County’s March foreclosure filings as published by ForeclosureListService.com confirms that headline. Read the rest of this article »

In this month’s newsletter read about our first time home buyer who just closed escrow with a 4.0%  fixed rate loan, the Mortgage Protection Program that is offered for first time home buyers, the results of our home buyer workshop and “speed dating” caravan, and lastly, commentary and stats about inventory being way down.