Mortgage Foreclosure & Refinance Resource

Following up on yesterday’s post today president George Bush and the two highest economic officials in the US government all objected strongly today to plans in Congress for changing bankruptcy laws to protect homeowners caught up in the mortgage meltdown. The idea of allowing bankruptcy judges to restructure loans ‘wouldn’t be fair to millions who pay their mortgages each month on time and it would be unfair to future homeowners,’ Bush told reporters summoned to the White House for a morning press conference.

US lenders have also opposed the proposal as something that would lead to higher mortgage costs for all borrowers, since lenders would have to insure against the possibility of only partial repayment of mortgage loans.

Senator Evan Bayh, a Democrat from Indiana, defended the proposal today by arguing that only existing mortgages could be altered under the bill and therefore should not affect future rates prospective borrowers would have to pay.