In January, Citi Bank agreed with lawmakers to give authority to bankruptcy judges to alter existing mortgages. After the agreement was made, much interest was shown on behalf of other lenders who also supported the measure. Borrowers are required to have attempted to work with their lender before hand in attempts to modify their loans, before pursuing bankruptcy. In the event of bankruptcy, judges have the authority to alter mortgages at will to help fit what will work best for the borrower.
This is a big move in the loan modification sector as it is another measure that the government has passed to assist consumers in keeping their house and being able to afford a reasonable mortgage payment. It is unclear whether or not this will be accepted by other major lending institutions.
This news is critical for those seeking loan modification. As more news develops we will be sure to keep you informed here at loan modification sites.
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