The Nails are in the Coffin When it Comes to Wrongful Foreclosure.

Dear Readers:

Resent research has shown that the typical wrongful foreclosure case involving big lenders such as Bank of America, Wells Fargo, Chase, Citibank, Deutche Bank, and Mortgage Electronic Registration Services (aka MERS) have all the rulings going in their favor.    It doesn't seem to matter if you pay attorneys $10,000 or more for litigation to stop or enjoin a foreclosure, the courts are ultimately not ruling in our favor.  This case embodies every last theory I had in my bag of tricks to go after a wrongful foreclosure case.  All wiped out.

HERRERA v. FANNIE MAE (Federal National Mortgage Association) 

No. E052943.

May 17, 2012.

Borrowers under deed of trust brought action against Federal National Mortgage Association (Fannie Mae) to set aside the trustee's sale of their home, to void or cancel the trustee's deed upon sale, and for violation of the statute governing assignment of power of sale.

Court of Appeal 4th District Affirmed the trial court's rulings which held that:

1.  MERS had authority to assign deed of trust;

2.  The assignee of deed of trust had authority to execute substitution of trustee;

3.  Civil Code § 2932.5, the statute governing assignment of encumbrancer's power of sale did not apply to power of sale under a deed of trust; and

4.  That Fannie Mae was authorized to initiate foreclosure before assignment of deed of trust was recorded.

Readers it is crystal clear.  You are going to have to reconcile with your lender or try to get them to give you a loan modification, or get out using short-sale transactions, or simply walk way in foreclosure.  NOW more than ever you need the qualify services of the Law offices of R. Grace Rodriguez, to help go over your strategy for dealing with the mortgage nightmare that America's leading lenders handed you to deal with.  You must speak with competent bankruptcy attorneys who can help you with all different types of bankruptcies if they are necessary to help you achieve your goal of saving your home.  Alternatively you can benefit from our extensive skills in helping you maximize the benefits of surrendering your home and achieving the greatest cost savings, potentially leaving you with the ability to purchase a new home with the savings you have achieved.

Call us today for help.  The consultation is free!

You can file for Bankruptcy but it won't stop......

Dear Readers:  

Many of you know that under 11 USC, Section 362, which is commonly referred to as the "Automatic Stay" filing a bankruptcy can stop a foreclosure sale.  However, it may not work in some instances.  If you have previously filed a bankruptcy and/or the court issued an order lifting the stay its possible that the stay will only apply for 30 days or not apply at all.  

Your home is far too valuable to you to make a mistake.  Don't trust your residence with a real estate broker.  While there are many good ones out there, far too many of them make the mistake of filing a bankruptcy on your behalf unbeknownst to you so they can have more time to complete a short sale.  This often times is a huge mistake and will impact you negatively.  

Make sure the professionals you are using to help you save your home know this information.  I strongly recommend that you retain the services of a licensed Bankruptcy Attorney to make sure of what will apply to your situation.  

But what you might not know is that filing a bankruptcy won't stop any of the following (NOTE:  This is not an all inclusive list):

1.  Family law issues such as paternity lawsuits, requests for orders for domestic support and visitation and the dissolution of marriage (but only to extent it is not seeking to divide assets);  domestic support orders.

2.  Driver's license restrictions & Wage garnishments for domestic support obligations.  However, once you file a chapter 13, it is possible to negotiate with these agencies for a payment plan in bankruptcy to get the driver's license reinstated and stop the wage garnishments.

3.  The interception of a tax refund.  So note that if you are going to file for bankruptcy, make sure you already got your refund!

4.  IRS or Franchise Tax Board Audit, issuance of a notice of tax deficiency or a demand for tax returns;

5.   COMMERCIAL LEASES:  If your lease is expired, a bankruptcy won't stop eviction proceedings.

6.  As I said above, a FORECLOSURE if there is an order entered in Prior Two Years giving relief from stay.

7.   EVICTION JUDGMENT.  Note this is an important one.  If you have lost your house in foreclosure, you can stay the case if there has not been entered a judgment.  But if  Judgment has been entered, the Bankruptcy will not stay the Sheriff's lock out.  There are some exceptions where some local Sheriff's departments won't do a lock out in the face of a bankruptcy.

Call me if you need me!  Have a great weekend!

MORE BAD FAITH AND CRAP FROM AURORA LOAN SERVICING

Dear Readers:

Today, my client got a letter that her loan payment on her home was going to double.  Her rate is 8% for the first five years, which then drops to 2.25% over the H.15 Constant maturity 1-Year Rate established by the US Treasury which is currently .2733 so technically her rate at the five year rate will be 2.675  more or less.  With insurance and taxes her payment should be only about $3,700.00 per month to keep her house.  But Aurora wants $4,883.00 until July 12, 2012, then they will drop it to $3,700.00 per month or whatever index is at that time.

But here is the kicker.  She filed a chapter 13 Bankruptcy.  I sent in an authorization for her to speak directly with the lender regarding loan modification.  She asked for one, and was told she doesn't qualify.  After calling repeatedly, they finally agreed to interview her for a loan modification.  But here is what we learned. . . .  UNLESS BOTH the LAWYER AND THE BORROWER send a letter in WRITING requesting loan modification, it WILL NOT BE OFFERED.  How is that for complying with the spirit of HAMP.  What a dismal failure that program turned out to be.

Anywyer Readers, the squeaky wheel gets the grease.  At this point I would recommend that each of you call your lender WEEKLY and SEND FAXES weekly of your attempts to get loan modification from your lenders.  When finally the Government wakes up and decides its going to help you, IF and ONLY IF that day ever comes, then you will have adequate documentation of your legitimate attempts at loan modification.

Additionally, I cannot impress upon you enough that if you have stopped making payments on your mortgage to at the least use a mortgage calculator online.  Figure out what you owe to your lender.  Calculate a mortgage payment based on 4% and at least mail in that amount to your lender.  Show them you can succeed with a reasonable loan modification.  Furthermore, if your lender won't take your money then open a savings account and deposit that amount into your bank account each month.  You will have documented proof for your lender that you can make a reasonable mortgage payment.  At the end of the day, if you cannot save your house, you will likely have saved up quite a bit of money if you have to move, or cure your default.

I can tell you that it is painful to go from not making payments for 2 years to paying rent or a mortgage again.  We as humans get use to having that money around and we spend it.  Please don't make that mistake!

Good luck out there, until the next time I have more news to report.

God bless each of you for the coming year!

VERY BAD NEWS for Homeowners with BANK OF AMERICA (BAC) LOANS facing FORECLOSURE

Dear Readers:

Today, Barbara Desoer, president of Bank of America announced that the moratorium on foreclosures by Bank of America is at an end.  She stated that in the month of December Bank of America intends to foreclose on 16,000 homes within the next ten days.  However, they will observe a "holiday suspension" of sales and evictions from Dec. 20 to Jan. 2.

My friends if your are scheduled for a foreclosure sale within the next 10 days or in the early part of January, I URGE you to meet with a BANKRUPTCY attorney, who can help you come up with a plan in which to either save your home from foreclosure, or alternatively recommend short-sale or eviction defense proceedings to help you maximize the amount of time you have left in your home. 

If you know that there is no way to save your house from foreclosure, then the economic goal should be to stay in your home as long as legally possible.  The longer you can stay in your home without making a mortgage payment is the more money you save to move out.

Many people with whom I have consulted tell me that their children are able to buy new family homes using the money they save.  Then they are able to file for bankruptcy under Chapter 7 and eliminate the balance of their debt and achieve a fresh start.

I cannot tell you how important it is to PLEASE CONSULT AN ATTORNEY IN YOUR COMMUNITY immediately so that you can develop a strategy that will improve your financial future.  For many of my clients that strategy does not include a bankruptcy.  So if you are afraid or embarrassed about bankruptcy, you owe it to yourself and to your family to consult with an attorney.  THE CONSULTATION at the Law Offices of R. Grace Rodriguez are always free!

Remember if you have a Bank of America loan and you are facing foreclosure, the MORATORIUM IS OVER!!!  Get HELP NOW while you can!

ATTENTION: All Wells Fargo and Wachovia borrowers!!!! Dec. 8 & 9, Ontario Convention Center LOAN MODIFICATION WORKSHOP

Dear Readers:

If you have a Wells Fargo or Wachovia Loan, your lender will be hosting a free workshop for Wells Fargo Home Mortgage, Wells Fargo Financial, Wachovia Mortgage and Wells Fargo Home Equity customers facing financial hardships. The two-day workshop -- to which Wells Fargo has invited thousands of Southern California homeowners -- will take place Dec. 8 and 9, from 9 a.m. -- 7 p.m. at the Ontario Convention Center Exhibit Hall located at 2000 E. Convention Center Way in Ontario, Calif. To help guarantee your ability to meet with a representative. Sign up by Tuesday, Dec. 6, at www.wfhmevents.com/leadingthewayhome. For more information call 1-800-405-8067.

HOWEVER...... Do not go to this event unprepared.  Make sure you have six months of bank statements.  Make sure you have three months of paystubs FOR EVERYONE IN YOUR HOUSE who is contributing to the mortgage payment.  If you have renters helping you pay for the home MAKE SURE YOU HAVE RENTAL AGREEMENTS WITH RECEIPTS OF THE MONEY YOU HAVE BEEN PAID.  Bring with you a list of all of your expenses.  You are going to have to show this bank that you can make a reasonable payment on the balance of your loan.  SOOOOOOOO.... google search mortgage calculator.  Add up how much you are behind, add up the taxes the bank has paid on your behalf, add up the balance of your loan.  Put that into the Principle and make that the "new loan."  Give an interest rate of at least 4% for the next 30 years and be prepared to show you make at least 2.5 times that amount if you expect to have any chance at getting a loan modification.  However, this system DOES NOT GUARANTEE that you will get a loan modification.  It will depend on other factors likely to be out of your control including but not limited to what your home is worth, where its located and whether your loan was insured or not.

People don't realize this, but if your lender had insurance on the loan, they just as soon foreclose, cash in on the insurance policy to limit their losses and then reinvest in the cheap real estate left on the market.  DON'T BE FOOLED, I bet the banks are making a killing, while crying broke to Congress.

If you can't get modified, don't wait too long and get too far behind that you can't save your home in a Chapter 13 Bankruptcy.  Make sure before you go to this meeting with Wells Fargo, or any other lender that you go for a free consultation to a LOCAL bankruptcy attorney in your community so they can go over your situation and help you decide whether it is worth it under your circumstances to stay in this home.

Thanks for reading!

HELP from FANNIE MAE coming to LOS ANGELES - Even if you have already been turned down!

Dear Readers: 

If you are struggling to get your loan modified and your loan is owned by Fannie Mae help for you may have arrived if you live in the Los Angeles Area.  Go to this link to find out if Fannie Mae has your loan:  www.fanniemae.com/loanlookup The Greater Los Angeles Mortgage Help Center will be offering foreclosure avoidance assistance in both English and Spanish.  The counseling is free!  Call (866) 442-8576 or email la_mhc@fanniemae.com to schedule your appointment.

Even if you have already been turned down for a loan modification it is worth it to keep applying.  Because the economy is not recovering as quickly as investors were wanting, they are reconsidering their previous decision not to modify loans, and re-thinking their strategy.  So please don't give up!  However, if you have already received a Notice of Sale, don't wait to until the last minute.  Consult a bankruptcy attorney for free explore options to save your home in bankruptcy, or review your case to fully understand and know your rights.  We are here to help. 

Bank of America Hog-Ties Homeowner Looking for Loan Modification Virtually Guaranteeing Borrower Will Lose the Home in Foreclosure - Another example of "I would love to give you a loan modification Mr. Smith. Just bring in a unicorn to our office and we will be happy to accommodate you!"

Just in this morning. . . . Client calls me crying on the phone.  Her husband suffered a small heart attack when he received the proposed loan modification from Bank of America.  He just so happened to have received the same loan modification paperwork that I received.  The poor women faxed me her loan modification which I reviewed.  Her is what I discovered.

First of all the amount they put for the monthly mortgage payment is just as high as the regular payment.  They are virtually giving no assistance to this borrower.  It is an FHA loan.  While they are submitting a claim on one hand to FHA under the mortgage insurance, they are at the same time rolling the same amount of the claim back into the loan!

The payment for which BofA is asking does not reflect the new lowered interest rate.  It continues to reflect the old rate.

The loan modification notice is dated April 21, 2010, but is not sent out federal express until April 23, 2010 and gives the borrower until Tuesday April 22, 2010.  Funny how Bank of America seems to only send out loan modification notices on Thursdays and want them back by a Tuesday.  Could this be because they don't expect a borrower to find a lawyer over the weekend to help them review the files.  Or worse yet, they don't expect the borrower to be able to find a NOTARY who can NOTARIZE the documents so they can be sent back in time?

Or did they pick that timing - DUE DATE, knowing that theses Borrowers get paid on the 15th & 30th of the month and would not have collected a paycheck in time to pay the $1750.00 they want in order to receive the loan modification?

By the way they set a Sale Date for foreclosure of May 7, 2010.

Now Bank of America's loan modification paperwork states that this loan modification is completely invalidated if the borrower should file a bankruptcy during the 28 years they have left on the loan.  So this means that along with paying the mortgage which didn't change at all. .. . the borrowers are going to have to pay back the 40K they accumulated in credit card debt to take cash advances to to survive when the wife lost her job and they couldn't afford the payments in the first place.  So here is the hog-tie.  Bank of America makes these borrower choose between keeping the house and keeping the credit card debt

The next rub in all of this is the language on the "Negotiation Agreement"  It states that the borrower must return all of the requested documentation for final approval.  If the final approval is not given they can go forward with foreclosure sale on May 7, which is only one week after they receive the documentation on April 28, 2010.  Do you get the same feeling I get?  Bank of America is going to collect another $1,750 from these borrowers, deny the loan modification on May 6, 2010, sell the house on May 7, 2010.  So these borrowers end up paying for their own execution!

Bank of America goes one step further.  They say that unless the borrowers receive something in writing from Bank of America stopping the sale . . . (which is the functional equivalent of calling your local Bank of America Branch office and ordering pizza from them to be delivered - - you know THAT's never gonna happen) the sale will go forward.  And as I said before if they file a chapter 13 to stop the sale they won't get a chance at loan modification at all!

Then to make matters worse yet, this is an FHA LOAN.  The offer does not comport at all with the federal GUIDELINES FOR FHA LOAN MODIFICATION!!!!!!  But again, I believe those guidelines state that if the borrower files for bankruptcy they are disqualified as well!

Okay we will call Bank of America on Monday Morning to see if they can explain themselves for this deplorable loan modification offer.  An offer that provides absolutely no assistance and see if we can change this situation.

I'll post again and let you know what happens.

ADVICE:  If you are facing a foreclosure sale, take the credit counseling course that is required to be taken for pre-bankruptcy filing.  You can find an approved one at CRICKETDEBT.COM  they charge like 36 bucks for the course.  Then hire a bankruptcy attorney to prepare your paperwork who has the ability to electronically file. This way you can negotiate with the bank, if you can ever get a hold of anyone.  If they tell you the sale is going to be continued, tell them you need an e-mail confirming that fact.  Then if they don't give you written confirmation that sale is being continued, the night before, ask your bankruptcy attorney to file your emergency petition.

OneWest Bank Sells Home at Foreclosure to 3rd Party Despite the Fact Homeowner was in an OBAMA Trial Loan Modification Program

Hello Readers:

The news only seems to get worse. In December 2009, Congress re-visited the idea of allowing Bankruptcy Judges to reduce the principal balance owed on first mortgages on a borrower's residence. This is referred to as a "Cramdown" aka "Cram-down" This concept was suppose to the be the "STICK" against the mortgage lenders if they failed to play fair when it came time to offering a loan modification. Mind you, these are loan modifications that mortgage lenders promised President Obama and Congress that they would liberally provide to troubled homeowners in exchange for receiving money from the Troubled Asset Relief Program. Instead of giving borrowers fair consideration for a loan modification, most of the lenders have repaid TARP funds in exchange for a license to foreclose with impunity!

In December 2009, the Senate overwhelmingly turned down a bill which would have given a cramdown to bankrupt homeowners. The wealthy in this country can cram down their boats, airplanes, yachts, and rental units. . . but the average American homeowner is stuck with a huge mortgage on a house that is worth 40% to 50% of what they owe.

My observation has further been that if you have been in trial loan modification status, you will continue to be kept in that status until there is no way that the income you identified on your loan modification application could be enough to support filing a Chapter 13 Bankruptcy! Think about this. If a bankruptcy could eliminate your credit cards, refinance cars which were purchased more than 2.5 years ago, and eliminate your 2nd mortgage, and you had enough income to pay your first mortgage and 1/60th of what you are behind on your first mortgage, then it is clear you can save your house in bankruptcy. However, what it seems like some of these lenders are doing is inviting borrowers into trial loan modifications. They don't deny the loan modifications until the arrears get so big that there is no way that the borrower could afford the 1st and pay 1/60th of the arrears. Its a blatant trap.

Alternatively, if they don't want to wait that long they do what OneWest Bank did to one of my clients. My client had fully complied with the trial loan modification requirements. One West bank admits they received everything they needed to fully accept the offer of a trial loan modification. However, two weeks after they received all of the documentation, OneWest Bank foreclosed on the property, WITHOUT ANY WARNING to my office or my client.

Unfortunately we don't know whether the property was sold to a Third Party or not. If it was sold to a 3rd party then there won't be anything that can be done to get it back. However if the bank simply took it back they could rescind the sale. But it doesn't appear that they will be willing to do so. I suspect that OneWest Bank figures that my client doesn't have the $5,000 in attorneys fees needed to file the lawsuit to get the property back. The few that do fight back, seem to end up losing their money because the "Old Boy" network of judges in place from the Bush administration always seem to side with the banks in these disputes.

Many of you have seen my friends at http://thinkbigworksmall.com/mypage/tbws/ who exposed the FDIC, ONEWEST BANK, INDYMAC BANK and the scam they pulled. I don't think the FDIC is able to answer all of the points they disputed in the video. But it breaks down to this. . . . OneWest Bank makes a fortune if they foreclose or approve a shortsale. OneWest Bank sits with a shakey loan if the agree to modify. So I will leave up to you to decide what you think OneWest is going to do.

It is clear that this whole system of judges, FDIC, politicians, banks, and brokers is a byproduct of our own voter apathy. How many people don't vote? By not voting the few chosen in this country have the laws written in their favor. Most Americans are destined for economic slavery in the form of unfair and predatory mortgages and credit cards. Where is Ralph Nader when you need him! Register to vote today at the very least.

Protect yourself if you want to save your house. File your bankruptcy if you are able, and do it now. Save your house with Chapter 13 now, or proceed with loan modification at your own peril!

HAMP Program Is a Dismal Failure - Bank of America one of the worst in providing loan modifications to its customers. BOYCOTT BofA NOW!

Alan White recently reported "Million homeowners have been lured into temporary payment plans with false promises of permanent loan restructuring.  After 11 months, only one in ten has had their mortgage permanently modified.  More disturbing is the fact that these one million homeowners in trial mods, i.e. short-term payment plans, were given a deadine of January 31 to convert to a permanent mod. Treasury reports that about 33% of those who have been in trial payments for three months or more have missed payments.  The other two-thirds are making their payments.  That means that more than 500,000 homeowners are in trial modifications, making payments on time, but about to be kicked out of the program, presumably because of missing paperwork."

If you are going to save your house bankruptcy is about the only way to make it affordable.  Look at the numbers.   Bank of America has only completed 3200 loan modifications since the inception of the HAMP program.  This statistic is frightening in light of the fact that they took over most of the Countrywide Loans.  Many of the Countrywide loans were predatory and so declared by California's state attorney general in a lawsuit instituted in 2009.

There is just no way around us.  President Obama has abandoned bankruptcy reform that would allow you to reduce your mortgages to the fair market value of your home.  If you intend to keep your home and you can afford to make the mortgage payments on the first mortgage IF we can eliminate your credit card debit, refinance your motor vehicle to a better interest rate and reduce the amount owed to the present value of the vehicle then file your bankruptcy before its too late.  In Chapter 13 Bankruptcy you have to pay back all of the money you are behind on your first mortgage.  However you get five years to do it.    

Stop wasting time asking the bank for something they just aren't too likely to give you.  See any reputable bankruptcy attorney in your community immediately.

Senator Dianne Feinstein States That Hope is Not Lost for a CRAMDOWN

I got this e-mail today from Senator Feinstein:

Dear Ms. Rodriguez:

Thank you for writing to me to share your thoughts on legislation that would allow bankruptcy courts to modify the terms of home loans. I appreciate hearing from you on this important subject.

California is one of the states hardest hit by the foreclosure crisis. Approximately 520,000 homes received a foreclosure filing in California in 2008, and more than 2.3 million homes received a foreclosure filing nationwide.

Foreclosures are not in anyone's best interest. While they are a catastrophe for the homeowner, they also leave the lender with a property that has to be resold, frequently at a loss, and the neighborhood with an empty house that is often not being maintained. When this happens, communities can be decimated, local economies suffer, and crime often increases.

On January 6, 2009, Senator Richard Durbin (D-IL), introduced S. 61, the "Helping Families Save Their Homes in Bankruptcy Act." I am an original co-sponsor of this bill because I believe it will help to stem the current foreclosure crisis. The bill would amend the bankruptcy code to eliminate a provision that prohibits bankruptcy judges from modifying mortgage loans on primary residences. The bankruptcy court would be authorized to extend the time allowed for repayment of a mortgage loan, in order to reduce the debtor's monthly payment to a feasible amount. The bill would also allow bankruptcy judges to convert escalating adjustable rate mortgages into fixed-rate mortgages, at a reasonable rate of return for the bank.

On March 5, 2009, the House of Representatives passed a companion version of this legislation (H.R. 1106) with similar provisions by a vote of 234-191. It is expected that this legislation will come before the Senate shortly.

I believe that Congress must do everything possible to help solve the current foreclosure crisis and keep struggling homeowners in their homes. I appreciate hearing your views on this matter. Please know that I will be sure to keep your comments in mind should this bill or similar legislation come before me for consideration in the Senate.

Again, thank you for contacting me. If you have additional questions or concerns, please feel free to contact my Washington, D.C. staff at (202) 224‑3841.

Sincerely yours, Dianne Feinstein
United States Senator

Senator Durbin I feel your pain!

After a disappointing vote rejecting on Senate Bill 61 entitled the Helping Families Save their Homes In Bankruptcy Act Senator Durbin commented,

"I am sick and tired of being asked to give billions of dollars to these banks when they won't in any way help the people who are facing mortgage foreclosure," Durbin said. "They're not renegotiating these mortgages and they refuse to support an effort to add legislation that would give them the keys to the courthouse door."

He added, "The American Bankers Association and the Community Bankers Association walked away from the table."

Ryan Grim reported on the HuffingtonPost.com,

"The banking and real estate industry has funneled roughly $2,000,000 into Landrieu's campaign coffers over her 12-year career, according to data from the Center for Responsive Politics. Bayh has taken in about $3.5 million. The financial sector is Nelson's biggest backer; he's taken $1.4 million from banks and real estate interests and another $1.2 million from insurance firms. Tester has fielded roughly half a million in his two years in office.

That's about nine million dollars -- far, far less than one percent of the amount taxpayers have spent to bail out the financial industry."

I hope we will all remember every member of the Senate who took money from the leading banking institutions as part of their campaign contributions and or voted against the Cramdown Bill.

American Banks and Lenders Shooting Themselves in the Foot in Opposing a Cramdown Bill

“Cramdowns” – would give bankruptcy judges the power to modify the terms of mortgages for individuals who have filed for Chapter 13 bankruptcy protection. Judges would have the ability to reduce interest rates, lengthen loan terms, and cut principal payments on the residence. Note that bankruptcy judges already have this power on rental properties and on other personal property. This means that everyone who is upside-down on their mortgage would have the incentive to pay their reduced mortgages and keep their homes. This would mean fewer homes on the market for ready and available borrowers. Fewer homes on the market means that this would increase the values of homes. The net affect is to economically make a cramdown unnecessary because the loans are equal to what the homes are ultimately worth.

However, the banks and others see a cramdown provision as a threat. They believe that it would be particularly detrimental for young individuals. They claim that banks and credit unions would be forced to raise interest rates to cover borrowers who file bankruptcy and lend only to the people who have several years of solid credit history. While it may be true that it would raise interest rates, the only reasonable response is . . "SO WHAT!" This means that it would be harder for the banks and lenders to give away loan money like it was candy. Afterall, this is exactly why we got into this mess.

Adam Levitin, an associate professor of law at Georgetown University has done significant research into mortgage modifications agrees with me. He also stated, “The question is not whether bankruptcy modification will result in losses,” he said. “It will. The question is whether these will be greater losses than lenders will incur in foreclosure, which is the only real alternative.” He further stated that "Mortgage modifications in bankruptcy offers unparalleled advantages over other potential solutions. It is the only solution that costs taxpayers nothing, it makes borrowers and lenders share the pain.”

Senator Dick Durbin's press secretary Max Gleischman is absolutely right. He said, “Doing nothing and letting the current housing crisis let itself play out has done more to drop home prices than a change in bankruptcy law will." I have to agree with him!