Cramdown Bill

Con-tract - a binding agreement between two or more persons or parties ; especially : one legally enforceable (Merriam-Webster)

House Expected To Vote On Cramdown Bill – When did we stop taking responsibility for our actions. I agree, home prices have fallen, but does this give a judge or anyone else the right to tell a bank, I know you financed (paid) the seller of a property $200,000 for their home and the buyer signed a contract promising to pay you back. But, in the last few months home prices have fallen and that house is now only worth $170,000. So, I am going to “cramdown” that loan to $170,000. I know you’re out $30k, but that’s the way it is.

I am not a politician nor do I have the desire to ever be one. But this is supposed to be a nation of laws. I do feel bad for those whose home prices have gone down in value but I have enough belief in this country, that in time prices will again be on the rise. What happens the next time prices fall? The banks and mortgage companies will not accept these extra risks, nor should they, without a cost. It will lead to higher interest rates and probably higher down payments for the buyer which will keep some buyers out of the market. And what about next year or five years from now, what do the politicians do if home prices fall again. Do we have another helping hand from the government?

If this goes through, I’m afraid we have started down the wrong path.